annual report 2017 18 - infrastructure...

Infrastructure NSW

Annual Report 2017–18

Our role

The role of Infrastructure NSW is to provide

independent advice to assist the NSW Government in

identifying, prioritising and assuring the delivery of

critical public infrastructure across NSW for economic

and social wellbeing.

Our role also includes ensuring decisions about

infrastructure projects are informed by expert analysis

and advice.

The Act

Infrastructure NSW was established in July 2011

as a statutory body, under the Infrastructure NSW

Act 2011.

The Act tasks Infrastructure NSW with the following

functions:

a) to prepare and submit to the Premier a 20-year

State infrastructure strategy

b) to prepare and submit to the Premier 5-year

infrastructure plans and other plans requested by

the Premier

c) to prepare and submit to the Premier sectoral

State infrastructure strategy statements

d) to prepare project implementation plans for major

infrastructure projects

e) to review and evaluate proposed major

infrastructure projects by government agencies or

the private sector and other proposed

infrastructure projects (including

recommendations for the role of Infrastructure

NSW in the delivery of those projects)

f) to oversee and monitor the delivery of major

infrastructure projects and other infrastructure

projects identified in plans adopted by the Premier

g) to carry out or be responsible for the delivery of a

specified major infrastructure project in

accordance with an order of the Premier under

Part 5

h) to assess the risks involved in planning, funding,

delivering and maintaining infrastructure, and the

management of those risks

i) to provide advice to the Premier on economic or

regulatory impediments to the efficient delivery of

specific infrastructure projects or infrastructure

projects in specific sectors

j) to provide advice to the Premier on appropriate

funding models for infrastructure

k) to co-ordinate the infrastructure funding

submissions of the State and its agencies to the

Commonwealth Government and to other bodies

l) to carry out reviews of completed infrastructure

projects at the request of the Premier

m) to provide advice on any matter relating to

infrastructure that the Premier requests.

Letter to the Premier

31 October 2018

The Hon. Gladys Berejiklian

Premier of NSW

Parliament House

Macquarie Street

Sydney NSW 2000

Dear Premier

I am pleased to submit for presentation to Parliament the Infrastructure NSW Annual Report for the financial year ended 30 June 2018.

The report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984, the Public Finance and Audit Act 1983 and the regulations under those Acts.

The financial statements for 2017–18, which form part of the report, have been submitted to and certified by the Auditor-General of New South Wales.

Yours sincerely

Jim Betts Chief Executive Officer

Infrastructure NSW Annual Report 2017-18 2

Contents

Chairman and CEO overview 4

Review of 2017–18 6

Governance 17

Management and structure 17

Board meetings 22

Committee meetings 22

Organisation structure 23

Our senior management team 23

Risk management and insurance 20

Internal audit and risk management attestation 24

Digital information security attestation 25

Financial Statements 27

Infrastructure NSW 27

Infrastructure NSW Staff Agency 64

Outline budget for 2017–18 82

Statutory reporting obligations 83

Human resources 83

Executive remuneration and performance 83

Personnel policies and practices 83

Diversity 83

Industrial relations 84

Annual report production 84

Promotion 84

Responding to consumers 84

Payment of accounts 85

Contracted services and consultants 86

Public interest disclosures 88

Government Information (Public Access) Act 2009 88

Contact us 90

Infrastructure NSW Annual Report 2017-18 3Infrastructure NSW Annual Report 2017-18 3

Chairman and CEO overview

In 2017-18 Infrastructure NSW continued to provide independent advice on infrastructure

priorities and major project assurance to support the NSW Government’s unprecedented

infrastructure investment program.

Infrastructure NSW has maintained a key role in the prioritisation, planning and delivery

of high value infrastructure projects across NSW.

The $87.2 billion pipeline budgeted for infrastructure capital spending across NSW to

2021-22 is derived in large measures as a result of the agency’s advice over the last seven

years. This Annual Report sets out the key contributions made by Infrastructure NSW in

2017-18.

During the past year, Infrastructure NSW has:

• Delivered a range of key project milestones, including:

o starting major works on the Clarence Correctional Centre,o commencing construction on Western Sydney Stadium in Parramatta,o securing (through Create NSW) planning approval for the upgrade of the

Walsh Bay Arts Precinct, with works to commence in late 2018,o continuing the final stages of the construction of the refurbished Anzac

Memorial,o completing the Martin Place Siege Memorial,o preparing a Final Business Case and beginning the planning and procurement

for the new Sydney Football Stadium, ando completing a Strategic Business Case for the redevelopment of Stadium

Australia.

• Continued to oversee the Infrastructure Investor Assurance Framework, with 113 reviews undertaken during the year to provide Cabinet with assurance about the on-time, on-budget delivery of major capital projects and programs.

• Submitted to the Premier the 2018 State Infrastructure Strategy, containing 122 recommendations, of which 113 were accepted by the Government.

• Commenced the South Creek Sector Review, advising the NSW Government on how infrastructure and other decisions can achieve its vision for Sydney’s Western Parkland City.

• Established the cross-agency Construction Leadership Group to drive reform in the construction sector, resulting in the June 2018 release of the NSW Government’s Action Plan: A Ten Point Commitment to the Construction Sector.

• Prepared and published the first of a series of Business Case Summaries for major projects approved for funding, including the Sydney Football Stadium Redevelopment, the Powerhouse Museum in Western Sydney and the F6 Extension– Stage 1.

• Continued to update and release the NSW Infrastructure Pipeline document, giving the construction sector and its suppliers up-to-date information about forthcoming major projects.


• Continued the implementation of the Hawkesbury Nepean Flood Mitigation Strategy,including:

o completing social research on community awareness and preparedness forflood risks,

o testing and validating a new evacuation road signage system for the Valley,o working with the Bureau of Meteorology to develop new ways of improving

flood forecasting,o preparing a new Regional Flood Study,o through WaterNSW, ongoing preparation of a comprehensive environmental

impact statement for the proposed raising of the Warragamba Dam.

• Oversaw the ongoing allocation of funds to infrastructure projects from the $32.9billion Restart NSW fund, with over $4.9 billion committed to economically beneficialinfrastructure during the year and over 360 project funding deeds now in place withlocal Councils and other funding recipients across regional NSW.

• Continued to oversee the implementation of the Cultural Infrastructure Strategy:Advice to NSW Government 2016, following the release of the NSW Government’sresponse, the Cultural Infrastructure Action Plan 2018, including supporting two ofthe priority projects recommended in the strategy, the Walsh Bay Arts Precinct andthe Sydney Modern Project.

Infrastructure NSW seeks to work collaboratively across government to promote effective

infrastructure planning with a focus on improved business case development, and drawing

on expert, independent assurance reviews at key project milestones.

Infrastructure NSW is also committed to supporting the Government’s aim to attract

private sector investment to foster competition and innovation in the design, financing and

delivery of new infrastructure.

Looking forward, in 2018-19 Infrastructure NSW plans to focus on the following priorities:

• Delivering key project milestones including the completion of the Anzac Memorial andWestern Sydney Stadium projects.

• Finalising, with Water NSW, an Environmental Impact Statement for the raising of theWarragamba Dam.

• Undertaking Gateway reviews and other forms of assurance to ensure the effectivedelivery of major projects that have been endorsed by the Government.

• Finalising the South Creek sector review to support the Western Sydney City Dealand development of the Western Parkland City.

• Continuing to coordinate the NSW Government’s effort to improve constructionprocurement and drive reform in the infrastructure sector.

• Continuing to ensure Restart NSW funds are directed to high priority projects, notleast in regional NSW.

We look forward to working with the Infrastructure NSW Board and our small but

dedicated team in 2018-19 as we continue to improve the way high value economic and

social infrastructure is procured and delivered across our state.

Graham Bradley Jim Betts Chairman Chief Executive Officer


Review of 2017–18

Infrastructure NSW had a successful 2017–18. Major achievements during the year

are outlined in this section.

Projects NSW

Projects NSW is a specialist unit within Infrastructure NSW that manages the procurement and delivery of a number of the state’s infrastructure priorities.

Projects NSW uses its commercial expertise to engage with the private sector and negotiate value for money outcomes for the community, in doing so it is able to leverage the wealth of experience built up through projects like the transformation of Darling Harbour and the skills of the Infrastructure NSW Board.

In the past financial year, Projects NSW continued to manage the following projects:

• A new correctional centre at Grafton, in partnership with the Department of Justiceand Corrective Services NSW.

• The new 30,000 seat Western Sydney Stadium on the site of the old ParramattaStadium, in partnership with Venues NSW.

• The redevelopment of the Walsh Bay Arts and Cultural Precinct, in partnership withCreate NSW.

• The upgrade of the Anzac Memorial at Hyde Park on behalf of the Anzac MemorialTrustees.

• The Martin Place Siege Memorial in partnership with the Department of Premier andCabinet.

Projects NSW also began managing or supporting the following projects:

• The redevelopment of the Sydney Football Stadium at Moore Park, in partnershipwith the Sydney Cricket and Sports Ground Trust and the Office of Sport.

• The redevelopment of Stadium Australia at Sydney Olympic Park, in partnership withVenues NSW and the Office of Sport.

• The expansion of the Art Gallery of NSW – the Sydney Modern Project – inpartnership with the Art Gallery of NSW.

Clarence Correctional Centre

Formally known as the New Grafton Correctional Centre, the new 1,700 bed prison located at Grafton was officially named the Clarence Correctional Centre in March 2018.

When complete, it will be Australia’s largest prison and will feature state-of-the-art security and surveillance, as well as advanced rehabilitation services. The prison will play a critical role in addressing the shortage of correctional centre beds and facilities within NSW and be the key correctional facility servicing the northern region of NSW.

The project is being delivered as a public private partnership (PPP) to offer high quality, efficient, value for money correctional services. The private sector is responsible for the design, construction, maintenance and operation of the facility for the next 20 years. The NSW Government will retain ownership of it.

Early works began in July 2017, with major construction now underway and on track to be


completed in mid-2020.

Milestones in 2017-18

• Start of early works in July 2017, following receipt of stage one planning approvalfrom the Department of Planning and Environment in March 2017.

• Preparation and exhibition of the stage two State Significant DevelopmentApplication in July 2017, followed by receipt of planning approval in December 2017.

• Start of major construction in February 2018.

• Completion of works to provide the site with telecommunications and a water supply.

• Completion of work to widen a two kilometre section of Avenue Road, the mainaccess road to the prison.

• Inclusion of the project in the NSW Government’s Infrastructure Skills LegacyProgram, in which it has exceeded training and employment targets.

Western Sydney Stadium

The Western Sydney Stadium is a new 30,000 seat rectangular stadium being constructed on the site of the old Parramatta Stadium. It will be used for a range of sports including rugby league, football and rugby union as well as for other events such as concerts.

The Stadium will accommodate more fans, provide an improved game day experience, serve as a catalyst for further investment in Parramatta as Sydney’s second CBD and bring wider community benefits to Western Sydney.

Major construction commenced in September 2017, following completion of the demolition of the old Parramatta Stadium, and is on track to be completed in early 2019.


• Receipt of stage two planning approval in August 2017 from the Department ofPlanning and Environment.

• Start of major construction works in September 2017.

Walsh Bay Arts Precinct

The redevelopment of the Walsh Bay Arts Precinct is a priority infrastructure project for the NSW Government. The iconic heritage wharves at Pier 2/3 and Wharf 4/5 will be redeveloped to create a public arts and cultural hub on Sydney’s famous waterfront, while preserving its unique heritage.

Infrastructure NSW is overseeing delivery of this project on behalf of Create NSW. After the original staged State Significant Development Application, was declared invalid in June 2017, the planning process recommenced and planning approval was received in May 2018. Work to deliver the project is expected to commence in late 2018.


• Preparation and exhibition of a new planning application in November 2017.

• Receipt of planning approval from the Department of Planning and Environment inMay 2018.

• Release of Request for Tender to the market for construction of the project in April2018


Anzac Memorial Centenary Project

The Anzac Memorial Centenary Project will see a renewal of the Anzac Memorial at Hyde Park in Sydney. The project includes completing the architect’s original vision from the 1930s and will be the legacy of the State’s Centenary of Anzac commemorations in 2018. The project will add a water cascade, educational facilities and historical displays to the Anzac Memorial, allowing future generations to learn about the Australian values of freedom, courage and respect.

Infrastructure NSW is overseeing delivery of the project on behalf of the Anzac Memorial Trustees. The project is jointly funded by the NSW Government, the Federal Government, and supported by the City of Sydney and the NSW Returned and Services League.

The project is on track with the refurbished memorial expected to open in late 2018, as the Centenary of Armistice Day commemorations approach.


• Ongoing construction of the refurbished Anzac Memorial, including the completion ofstructural works and commencement of internal fitout of the new memorial andexhibition spaces.

• Continuation of the Anzac Memorial Centenary Project Soil Collection in March 2017,a program to assist in collecting soil samples from 1,700 locations across NSW tofeature in the new public artwork at the centre of the refurbished memorial.

Martin Place Siege Memorial

Infrastructure NSW assisted the Department of Premier and Cabinet in the planning and delivery of the permanent memorial in Martin Place, that pays tribute to the victims of the 2014 Martin Place Siege. The design of the memorial was inspired by the many floral tributes that were left in Martin Place in the days following the siege, and featured more than 200 hand-crafted flowers inlaid into the pavement. The Memorial was opened by the Premier on 16 December 2017.

Redevelopment of the Sydney Football Stadium

In late 2017, Infrastructure NSW was asked to prepare a Final Business Case for the redevelopment of the Sydney Football Stadium. After submitting the Business Case to Government in March 2018, Infrastructure NSW was then tasked with the planning, procurement and delivery of the Sydney Football Stadium redevelopment.

The new Sydney Football Stadium will deliver a world-class spectator experience and will feature seats closer to the field of play, the best sight lines, contemporary food and beverage offerings and state-of-the-art technology.

The project has been designated a State Significant Development and planning approval is being sought in two stages. The procurement process is also underway.


• Preparation and exhibition of the stage one planning application in June 2018.

• Release of an Expression of Interest, followed by the shortlisting of two firms in June2018.


• Implementation of a collaborative procurement methodology in response to feedbackgauged during early market engagement.

Sydney Modern Project

The expansion of the Art Gallery of NSW – the Sydney Modern Project – is also a priority project recommended in the Cultural Infrastructure Strategy, and will enable the display of more of the State’s art collection and the hosting of more major exhibitions from around the world. The new building designed by international Pritzker Prize-winning architects SANAA will be linked by an outdoor art garden to the existing and much-loved historical building.

In 2017-18 Infrastructure NSW provided strategic advice to the Art Gallery of NSW during the design development phase, and from late 2018, will be responsible for the procurement and delivery of the project.

Redevelopment of Stadium Australia

In late 2017, Infrastructure NSW was asked to prepare a Strategic Business Case for the redevelopment of Stadium Australia. Infrastructure NSW submitted the Business Case to Government, which in March 2018 announced its decision to proceed with a reconfiguration of the existing stadium rather than a full redevelopment.

Infrastructure NSW has been tasked with the development of a Final Business Case for the preferred option – a reconfiguration of the stadium to make it a permanent rectangle stadium, bringing seats closer to the field of play as well as upgrading facilities and amenities. The Final Business Case is due to be submitted to Government in mid-2019.

Investor assurance

The Infrastructure Investor Assurance Framework (IIAF) was developed in 2015-16 under the NSW Gateway Policy, and is administered by Infrastructure NSW. The IIAF applies to all capital projects and programs, with an estimated total cost of $10 million or more, being developed or delivered by NSW Government agencies and government businesses.

The risk-based, tiered approach to investor assurance under the IIAF continues to ensure that the greatest focus is on the most important and complex projects, with 48 Tier 1 – High profile, high risk (HPHR) projects (at the end of June 2018) monitored and reported to Cabinet monthly. At the end of June 2018, 137 Tier 2 and 137 Tier 3 projects were monitored and reported to Cabinet on a quarterly basis.

The monitoring and reporting of projects is complemented by Gateway Reviews and Health Checks, a series of short, focused reviews at key project milestones conducted by expert reviewers, who are independent of projects and delivery agencies.

During 2017-18, 113 reviews were conducted. Reports were provided to Cabinet enabling Infrastructure NSW and delivery agencies to address any issues with the on-time on-budget delivery of projects.

Key registration, reporting and independent Gateway Reviews and Health Check metrics are highlighted in the figure overleaf.

The following performance reports, covering the 2016-2017 period, were submitted to the Infrastructure Investor Assurance Committee (IIAC) and to Cabinet:

• Cluster Assurance Plans.


• Assessment of expert reviewer panel capability.

• Gateway reviewer performance.

• Performance of closing-out recommended actions for all projects undergoing areview.

• Trends and analysis of the key issues.

• Overall performance of the IIAF.

In light of these reports, several amendments to the performance reporting regime were approved by the IIAC, including changes to the frequency and time period that each of the performance reports cover, as well as the need to avoid the duplication of content within these reports.

Gateway Review Workbooks were an area identified for improvement in the performance reports. Infrastructure NSW has undertaken a review of the Gateway Review Gates within the capital infrastructure review process. Ten revised Gateway Review Workbooks have been developed and are being piloted. The new workbooks have been made available on the Infrastructure NSW internet site.

Infrastructure NSW has also developed a new Panel Management Framework (PMF) following a recommendation from the performance reports. The PMF was formally adopted and put into operation in July 2018.

Finally, Infrastructure NSW has commenced a holistic review of the IIAF in order to drive better assurance outcomes under the IIAF, aligned with the Assurance 2018-2019 Business Plan outcomes of:

• Achieving better infrastructure outcomes from Government decisions.

• Enabling an engaged, high performing team.

• Improving the efficiency of what we do and how we do it.

• Harnessing and sharing the value of our information.

• Being sought out as experts and trusted partners.


20-year State Infrastructure Strategy

Under its Act, Infrastructure NSW must prepare and submit to the Premier the 20-year State Infrastructure Strategy (SIS) and review it every five years, and at such other times as the Premier directs. The initial SIS was submitted in November 2012 and reviewed at the then Premier’s request in November 2014.

In February 2018, Infrastructure NSW submitted the latest SIS to the Premier and it was released by the Government on 18 March 2018. The Government accepted 113 of the 122 SIS recommendations. The Metropolis of Three Cities: Greater Sydney Region Plan and Future Transport 2056 were prepared and released at the same time, reflecting the aligned long term land use, infrastructure and transport planning that was built through collaborative working arrangements.

The 2018 SIS set out Infrastructure NSW’s independent advice on the current state of NSW’s infrastructure and the needs and priorities over the next 20 years. Building Momentum State Infrastructure Strategy 2018-2038 looked beyond the current pipeline of projects and identifies policies and strategies needed to provide the infrastructure that meets the needs of a growing population and a growing economy.

It set six cross-sectoral strategic directions, each designed to achieve 'more with less' and embed good practice across the infrastructure lifecycle including:

• Integrating land use and infrastructure planning.

• Infrastructure planning, prioritisation and delivery.

• Asset management – assurance and utilisation.

• Resilience.

• Digital connectivity and technology.

• Innovative service delivery models.

It also recognised that different parts of NSW face different opportunities and needs, and sets geographic directions for infrastructure planning, investment and policy. Building on these strategic and geographic directions, the Strategy outlined policy and investment options across the key infrastructure sectors:

• Transport.

• Energy.

• Water.

• Health.

• Education.

• Culture, Sport and Tourism.

The SIS was underpinned by NSW Common Planning Assumptions which include consistent population, housing, employment and economic forecasts.

In preparing the SIS, Infrastructure NSW worked collaboratively with other government agencies including the Department of Planning and Environment, Department of Finance, Services and Innovation, the Department of Industry and Infrastructure Australia.

South Creek Sector Review

Infrastructure NSW is leading the South Creek Sector Review, a key recommendation of the 2018 State Infrastructure Strategy (SIS). The review follows an investigation of Sydney


Water’s preparedness to accommodate forecast population growth in Sydney during the development of the SIS.

South Creek is to be the green spine of the Western Parkland City. The Greater Sydney Region Plan outlines the opportunity for the Western Parkland City to develop on a blue-green grid, encouraging an urban form and pattern of development which will deliver enhanced amenity and liveability, urban cooling with increased tree canopy, affordable housing, lower electricty bills and significant employment opportunities, with the Aerotropolis as an economic hub.

The purpose of the South Creek Sector Review is to advise the NSW Government about options for major infrastructure investment and other decisions required to achieve the vision of the Western Parkland City. The first stage of the review will be complete by the end of 2018.

NSW Government Construction Leadership Group

Infrastructure NSW leads the NSW Government Construction Leadership Group (CLG), which was established earlier in 2018 to drive reform across government in the development, procurement and delivery of infrastructure projects. All of the key NSW Government agencies engaged in the delivery of the large long term pipeline of infrastructure investment are represented on the CLG.

This year, the CLG developed the NSW Government Action Plan: A ten point commitment to the construction sector. The Action Plan recognises that the NSW Government can only achieve its infrastructure objectives in partnership with the private sector and takes a longer term view about the need to drive quality, innovation and cost effectiveness by fostering a thriving and sustainable construction sector in NSW. The NSW Government endorsed and released the Action Plan in June 2018.

This Action Plan covers all NSW Government-procured construction and is designed to:

• Encourage an increase in the “supply side” capacity of the sector to meet future demand.

• Reduce industry’s costs and “down-time” by making Government procurement processesmore efficient.

• Develop the skills, capability and capacity of the construction industry’s workforce.

• Encourage culture change and greater diversity in the construction sector and itssuppliers.

• Foster partnership and collaboration between the public and private sectors to driveinnovation in the NSW construction sector.

The CLG and its member agencies will now develop an implementation plan to turn the 10 commitments into a program of specific measures to be rolled out progressively over the next 12 months.

Business Case Summary preparation

As the NSW Government’s independent infrastructure advisory agency, Infrastructure

NSW routinely assesses Business Cases and provides advice to Government on their

findings. From early 2018, Infrastructure NSW also began to prepare and publish

Business Case summaries for major projects once they have been endorsed for

funding by the government.


In 2017-18 Infrastructure NSW published the following Business Case summaries on

its website:

• Sydney Football Stadium redevelopment - Final Business Case summary

• Stadium Australia redevelopment - Strategic Business Case summary

• Powerhouse Museum in Western Sydney - Final Business Case Summary

• F6 Extension Stage 1 - Final Business Case summary

NSW Infrastructure Pipeline

In 2017-18 Infrastructure NSW continued to prepare the NSW Infrastructure Pipeline, to

assist the NSW Government in attracting private sector involvement in the financing,

design, construction and operation of infrastructure projects. It outlines infrastructure

proposals in development by the NSW Government.

The proposals in the NSW Infrastructure Pipeline are in various stages of development. The

document includes fully funded projects, as well as projects that are not yet funded, but are

expected to come to market in the next three to five years.

To ensure information is up-to-date, the pipeline is reviewed and updated every six

months. Updated versions are available on the Infrastructure NSW website.

Hawkesbury-Nepean Flood Risk Management Strategy

The Hawkesbury-Nepean Flood Risk Management Strategy was announced by the NSW

Government in May 2017. Its Phase One (2016-2020) implementation is being coordinated

by a Directorate based in Infrastructure NSW. $58 million of funding, announced by the NSW

Government in June 2016, will fund the implementation of Phase One.

The Strategy is a comprehensive long term plan for the NSW Government, local councils,

businesses and the community to manage the risk posed by regional floods in the

Hawkesbury-Nepean Valley. It includes detailed planning, environmental assessments and

community consultation for raising the Warragamba Dam wall by around 14 metres for the

temporary storage of flood waters. It also includes immediate actions to improve

responsiveness to flood risk in the Valley.

The Environmental Impact Statement (EIS) for the Warragamba Dam Raising is scheduled

for exhibition in 2019. The NSW Government will consider the Final Business Case for

raising the Warragamba Dam wall in 2020. Pending approval of the Business Case, and

subject to environmental and planning approvals, it is expected to take three to four years to

complete construction. The NSW Government will also consider the ongoing

implementation, monitoring and improvement of the Strategy.


• Social research on community flood risk awareness and preparedness was

completed in early 2018.

• WaterNSW, NSW State Emergency Service, and the Bureau of Meteorology worked


through a flood event scenario to test the current flood management arrangements.

• Roads and Maritime Services and the Directorate user tested and validated a new

evacuation road signage system to direct the Hawkesbury-Nepean Valley community

out of the floodplain in the event of a flood. The system is to be installed by early

2019.

• The Bureau of Meteorology developed a new methodology for improvements to flood

forecasting for the Hawkesbury-Nepean Valley.

• Preparation of a new Regional Flood Study, the first since 1995, to make

contemporary flood risk information available to communities and decision makers.

The Flood Study information will be made available from late 2018.

Warragamba Dam Raising Project

• WaterNSW, as the owner and operator of Warragamba Dam, is preparing a

comprehensive EIS and detailed concept designs for the proposal. The project is

considered state significant infrastructure under NSW legislation.

• Modelling, surveys, technical studies and analysis are under way to inform the EIS,

including Aboriginal Cultural Heritage Assessment in consultation with traditional

owners, and detailed flora and fauna surveys and assessments.

Restart NSW

In 2011, the NSW Government established the Restart NSW Fund to enable a range of

high priority infrastructure projects to be funded and delivered. Infrastructure NSW is

responsible for assessing and making recommendations to the Government for use of the

Restart NSW Fund. The purpose of the Restart NSW Fund is to improve economic growth

and productivity by investing in major projects that will improve public assets and the

competitiveness of the State, including local infrastructure in regional areas.

Infrastructure NSW recommends the use of the funds under the Restart NSW Fund Act

2011. New infrastructure projects considered for Restart NSW funding are subject to a

rigorous selection process. Projects selected for funding must be supported by a sound

Business Case showing the project is financially and economically justified. The key

components of the project assessment framework are:

• A strategic assessment to ensure the project aligns with the Restart NSW Fund Act

2011 criteria, existing government priorities and Restart NSW investment themes.

• An economic assessment to ensure the project is expected to produce a net

economic benefit and improve economic growth and productivity in the State

(demonstrated by a benefit-cost ratio of at least greater than one).

• Gateway assurance review process (where relevant) to ensure the project has

successfully completed the appropriate business case development processes.


During 2017-18, an additional $3.3 billion was deposited into the Restart NSW Fund,

making a total of $32.9 billion as at 30 June 2018. As reported in the 2018-19 NSW Budget,

$4.9 billion was committed to projects from the Restart NSW Fund during 2017-18.


As a matter of Government policy, 30 per cent of Restart NSW funds are to be committed to

Regional NSW projects (outside Newcastle, Sydney and Wollongong). This includes

allocations to local and community infrastructure programs.

In 2017-18, Infrastructure NSW recommended projects for the following local and

community infrastructure programs:

• Fixing Country Rail ($138.3 million).

• Fixing Country Roads ($120.4 million).

• Safe and Secure Water ($52.1 million).

• Regional Growth – Environment and Tourism Fund ($110.7 million).

• Growing Local Economies ($36.1 million).

• Resources for Regions ($28.2 million).

• Housing Acceleration Fund ($4 million).

Infrastructure NSW administers funding deeds with local government, NGOs and other

agencies for the delivery of local and community infrastructure projects. At the end of 2017-

18, Infrastructure NSW had established 363 deeds with funding recipients for projects with

a combined total of $925 million in Restart NSW funds. Infrastructure NSW works with

these funding recipients to ensure projects are delivered on time and on budget.


Governance

Management and structure

Infrastructure NSW’s governance model was established by the Infrastructure NSW Act 2011 and comprises a Board and Chief Executive Officer.

The Board

The Board provides general policies and strategic direction for Infrastructure NSW as well

as advice to the Premier and CEO of Infrastructure NSW on infrastructure matters. It

comprises an independent Chairman and five private sector members with relevant

infrastructure sector experience, all appointed by the Premier, and the heads of the

Departments of Premier and Cabinet, Planning and Environment, Industry, and the

Treasury.

Graham Bradley AM – Chairman

Appointed 4 July 2013

Reappointed July 2017

Graham Bradley is a professional company director and is currently Non-Executive

Chairman of HSBC Bank Australia and EnergyAustralia Holdings. He is also chairman of

Virgin International Holdings and Ensemble Limited. He is also on the boards of The

Hongkong and Shanghai Banking Corporation and Tennis Australia. Graham was

appointed a director of GrainCorp as of 1 March 2017 and then as the non-executive

Chairman on 1 May 2017. In April 2017 Graham was appointed as director and chairman of

Stilmark Pty Ltd.

Graham resigned as Chairman of Anglo American Australia Limited with effect from 30

June 2016, as Chairman and Director of Stockland Corporation Limited with effect from 27

October 2016 and of GI Dynamics Inc effective 24 November 2017.

Graham was managing director of Perpetual Limited from 1995-2003. Prior to joining

Perpetual, Graham was national managing partner of leading national law firm, Blake

Dawson (now Ashurst). Before this, Graham was a partner of McKinsey & Company, a

leading international firm of management consultants.

Graham was President of the Business Council of Australia from 2009-2011 and Vice

President from 2011-2012. He was Deputy President of the Takeovers Panel from 2006-

2013. He is a member of the Advisory Council of the Australian School of Business at

UNSW and a director of the European Australian Business Council. Graham also devotes

time to a range of non-profit organisations, including the State Library of NSW.

Graham was made a member of the Order of Australia in 2009 in recognition of his

contribution to business, medical research and the arts.


Jim Betts – Chief Executive Officer

Appointed 29 June 2013

Jim joined Infrastructure NSW in 2013 following almost 10 years in leadership roles at the

Victorian Government.

As part of his role at Infrastructure NSW, Jim led the development of the 2014 State

Infrastructure Strategy Update and the recent 2018 State Infrastructure Strategy, providing

a total of over 200 project and policy recommendations to Government. Jim chairs the

Infrastructure Investor Assurance Committee, reporting to Cabinet which monitors and

advises on almost 500 infrastructure projects across Government.

Since the establishment of Projects NSW in 2015, Jim has also been responsible for the

delivery of a number of the state’s infrastructure priorities, including the $3.4 billion Darling

Harbour transformation along with new major projects including Western Sydney Stadium,

Sydney Football Stadium, the Walsh Bay Arts Precinct redevelopment and the Clarence

Correctional Centre.

In June 2018, through his role as Chair of the NSW Government’s Construction Leadership

Group, Jim coordinated the development of the NSW Government Action Plan: A ten point

commitment to the construction sector. The Action Plan recognises that the NSW

Government can only achieve its infrastructure objectives if it works collaboratively with the

private sector.

Max Moore-Wilton AC – Private Sector Member


Reappointed June 2015

Max Moore-Wilton was appointed as Chairman of Sydney Airport Holdings Limited,

formerly called MAp Airports Limited, in April 2006. He was Chairman of Sydney Airport

Corporation Limited from 2006 to May 2015. Prior to this appointment, he was Executive

Chairman of Sydney Airport Corporation from 2002 and is past President of the Airport

Council International (ACI) World Governing Board.

Max was Chairman of Southern Cross Austereo Media Group (Previously Macquarie

Media Group) from 2007 to February 2015.

From 1996 Max was Secretary to the Department of Prime Minister and Cabinet for six

years where he oversaw fundamental reform of the Commonwealth Public Service. He

was appointed a Companion in the General Division of the Order of Australia in the

Australia Day Honours List 2001. Max is also member of the Board of Chris O’Brien

Lifehouse and The Europe Australia Business Council

Rod Pearse OAM – Private Sector Member, Chair Audit and Risk Committee,

Member Projects NSW Assurance Committee



Rod is a Board member of O'Connell Street Associates and is also Chairman of the

Infrastructure NSW Audit and Risk Committee.


Rod was CEO of Boral Limited (2000 to 2009), a Board member of the Business Council

of Australia (2003 to 2009), a member of the Westconnex Delivery Authority Board (2013

to 2015) and a member of the COAG Reform Council Expert Panel on Cities (2010 to

2012). Rod Pearse retired as a member of the Sydney Motorway Corporation Board in

September 2018.

Rod was awarded an OAM for services to Youth in 2009.

Roger Fletcher – Private Sector Member



Roger Fletcher is Managing Director of Fletcher International Exports, a company that

exports sheep, meats, wool and grain to more than 95 countries worldwide and farms sheep, wheat and cotton.

Roger is also Deputy Chairman of the National Export Lamb, Sheep and Goat Industries

Council, Board member of the Australian Meat Industry Council and the Australian Processor

Council.

Arlene Tansey – Private Sector Member, Member Audit and Risk Committee


Arlene is a Non-Executive Director of Aristocrat Leisure Limited, Adelaide Brighton

Limited, Primary Health Care and Lend Lease Investment Management. She was the

Chairman of Urbanise.com Limited and Future Fibreglass Technologies until her

retirement from both boards effective 14 October 2016.

She is a Fellow of the Australian Institute of Company Directors and a member of

Chief Executive Women. Her professional experience is as a senior investment

banker, commercial banker and finance and securities lawyer.

Dieter Adamsas – Private Sector Member, Chair Projects NSW Assurance Committee


Resigned 7 June 2018

Dieter Adamsas is currently a Director of Built Holdings Pty Ltd. and the San Foundation,

and retired as a Director of Infrastructure NSW in June 2018.

With 40 years’ experience in the construction industry, Dieter held various senior

accounting and commercial positions across the sector.

He has held various positions within the Leighton Group between 1986 and 2011

including CFO of Leighton Group, and Executive Director and Deputy Chief Executive

Officer of Leighton Holdings Limited, Chairman of Leighton Contractors Pty Ltd and

Chairman of Leighton Asia Limited.

He is the former Chairman of Geotech Group and a former Director of Acciona Geotech,

and has previously been a Director of Thiess Pty Ltd, John Holland Pty Ltd, Leighton

Properties Pty Ltd and was a member of the Leighton Holdings Audit Committee from

1990 to 2003.


Dieter is a former Director of the Committee for Economic Development of Australia

(CEDA). He is a life member and former President and Director of Financial Executives

Institute of Australia, Member of the University of New South Wales Business Advisory

Council and Fellow of the Australian Institute of Company Directors and formerly a Member

of the Trade Advisory Council.

Dieter is active in philanthropy and is a Board Member of the San Foundation and

Chairman of its Audit Committee.

Blair Comley – Secretary, NSW Department of Premier and Cabinet

Appointed 7 October 2014 by virtue of his position within the NSW public service

and consistent with the Infrastructure NSW Act 2011.

Appointment concluded 17 November 2017

Tim Reardon – Secretary, NSW Department of Premier and Cabinet

Appointed 18 November 2017 by virtue of his position within the NSW public

service and consistent with the Infrastructure NSW Act 2011.

Tim Reardon is the Secretary of the Department of Premier and Cabinet. He is

responsible for leading the entire public service in NSW and driving the Government’s

services, infrastructure and reform priorities.

Prior to this role, Tim was the Secretary, Transport where he successfully led the Transport

Cluster and its 25,000 people on behalf of the NSW community. Tim led the development

and delivery of the largest transport infrastructure and services pipeline in

a generation, with over $41 billion of capital works over a four year period.

Tim has 27 years’ experience working in both government and the private sector in

NSW and internationally. He is a born and bred New South Welshman and lives in

Sydney with his wife Lorna and two daughters.

Rob Whitfield Secretary, NSW Treasury

Appointed 13 July 2015 by virtue of his position within the NSW public service


Appointment concluded August 2017

Mike Pratt Secretary, NSW Treasury

Appointed 2 August 2017 by virtue of his position within the NSW public service


Michael Pratt AM was appointed as the 27th Secretary of NSW Treasury and NSW

Industrial Relations on 1 August 2017. The Treasury Cluster includes NSW Treasury,

NSW Treasury Corporation, NSW Industrial Relations, icare (Insurance & Care NSW) and

SAS Trustee Corporation. Michael is also Deputy Chair of Treasury Corporation (TCorp).

As Secretary, Michael is responsible for strategic management of the entirety of the

State’s finances, budget, assets, liabilities and financial risk management framework and

transformation.

Prior to his role with Treasury, Michael was the NSW Customer Service Commissioner,

where he revolutionised the way the Government delivers services - putting the people of


NSW at the heart of service delivery in the establishment of Service NSW. He led major

service reform across the NSW Government, chairing the NSW Customer Advisory Board

- the responsible governance entity for the delivery of State Government services to the

citizens of NSW.

Michael Pratt was honoured as a Member of the Order of Australia (AM) in the Queen’s

Birthday 2016 Honours List. Michael was recognised as a role model for Australian

society for providing significant service to public administration through reforms in

customer service and communication and to the finance and banking industry.

Carolyn McNally – Secretary, NSW Planning and Environment

Appointed 1 May 2014 by virtue of her position within the NSW public service and consistent

with the Infrastructure NSW Act 2011.

Carolyn is the Secretary of the Cluster of the Department of Planning and Environment,

which encompasses oversight of nine major government portfolios, including planning,

housing, resources, energy, housing, environment and the arts.

Since her appointment as Secretary in 2014, Carolyn has led a major transformation of the

Department’s governance structures and key portfolio areas. These include the

establishment of the Greater Sydney Commission, a major revamp of planning laws, an

increase in energy rebates, overseeing the largest investment into cultural infrastructure

since the build of the Sydney Opera House, and a landmark housing affordability package.

With extensive senior executive experience in the state and federal governments, Carolyn

brings to the Department a proven record of designing, managing and administering multi-

billion-dollar government programs.

Simon Smith – Secretary, NSW Department of Industry

Appointed in July 2015 by virtue of his position within the NSW public service and consistent

with the Infrastructure NSW Act 2011.

Appointment concluded March 2018

Simon Draper – Secretary, NSW Department of Industry

Appointed in March 2018 by virtue of his position within the NSW public service and

consistent with the Infrastructure NSW Act 2011.

Simon Draper was appointed as the Secretary of the NSW Department of Industry on 17

March 2018, following his role as the Deputy Secretary, Economic Policy Group, at the

Department of Premier and Cabinet. Mr Draper who has previously served as a Tribunal

Member at the Independent Pricing and Regulatory Tribunal has extensive senior executive

management experience in infrastructure and utility companies.

He is a former Managing Director of Lumo Energy, Chief Executive Officer of Wellington

Airport in New Zealand, General Manager Commercial at Integral Energy and Chief

Executive Officer of Northern Territory Airports. Mr Draper has a Bachelor of Economics

(Hons) from Sydney University, a Master of Business (Finance) from the University of

Technology, Sydney and has completed the Company Directors Course of the Australian

Institute of Company Directors. The Department of Industry is responsible for vocational


education and training, employment and industry policies and programs and a range of

regulatory and support functions for primary industries, crown lands, liquor, gaming and

racing, tourism and sport.

Board meetings

There were 11 Board meetings in 2017–18.

Board member Meetings attended

Chairman – Graham Bradley 10

CEO – Jim Betts 11

Private sector member – Roger Fletcher 10

Private sector member – Arlene Tansey 9

Private sector member – Max Moore-Wilton 10

Private sector member – Rod Pearse 11

Private sector member – Dieter Adamsas 10

Secretary, Department of Planning and Environment* 8

Secretary, Department of Premier and Cabinet* 10

Secretary, Department of Industry* 8

Secretary for Treasury* 6

* Includes nominee’s attendance.

Audit and risk committee meetings

There were four audit and risk committee meetings in 2017–18.

Committee member Meetings attended

Chair – Rod Pearse 4

Member – Arlene Tansey 4

Member – Dianne Leeson 3

Projects NSW Assurance Committee

There were two Projects NSW Assurance committee meetings in 2017–18.

Committee member Meetings attended

Chair – Dieter Adamsas (end June 2018) 2

Member – Rod Pearse 2

Member – Tony Spink 2

Member – Dennis Brewer 2

Member – Arlene Tansey 1


Organisation structure

Our senior management team

Infrastructure NSW has a small team of talented and experienced staff who

are working to deliver the functions of the organisation. The senior

management team is detailed below.

Jim Betts

Chief Executive Officer and Coordinator General

Experience as outlined in section: Board

Amanda Jones

Deputy Chief Executive Officer and Chief Operating Officer

Amanda is an Executive with over 30 years’ experience in infrastructure planning and

delivery including water, energy, transport and IT. Her career as an executive in the utilities

sector spans responsibility for corporate governance, capital investment and services, as

well as operations, including being CEO of an Energy Retailer.

Highlights range from being responsible for the first 20-year wastewater strategy

for Sydney, to providing energy supply for all Sydney 2000 Olympic Games

venues, to establishing an energy retail joint venture and meeting customer and

profit targets.

Since May 2011 Amanda has been a foundation member of the Infrastructure NSW team,

leading the delivery team of First Things First – the 20 year Infrastructure Strategy for

NSW released in October 2012. Amanda was also an integral part of the team responsible

for State Infrastructure Strategy Update 2014.

Amanda manages the operation of Infrastructure NSW and is responsible for finance,

Expert advice

Assurance

Projects NSW

Restart NSW

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program support for Projects NSW and Restart NSW, as well as governance, including the

role of corporate secretary. Amanda represents Infrastructure NSW on a number of key

forums.

Anissa Levy

Deputy Chief Executive Officer and Head of Investor Assurance

On secondment from March 2018 as the acting CEO of the Environment Protection Authority

Anissa joined Infrastructure NSW in September 2015 heading up the newly created

Infrastructure Investor Assurance function. Anissa oversees the operation of the

Infrastructure Investor Assurance framework, reporting to Cabinet on High Profile/ High

Risk projects, while providing monitoring of almost 450 projects across government

registered in the Infrastructure NSW assurance database.

Prior to joining Infrastructure NSW, Anissa was the Deputy Director General of Planning

and Programs at Transport for NSW where she was responsible for the Transport Cluster

capital budget, the Bureau of Transport Statistics, strategic integrated transport planning

and project development. Key personal achievements during this time included the

oversight of a number of major capital programs including the Transport Access Program,

Sydney’s Rail Future, Sydney’s Light Rail Future, Sydney Motorways Planning, Bus Rapid

Transit Development Program, Walk and Cycle Programs and the Major Urban Renewal

Program.

Anissa is a civil engineer and her 25 years’ experience spans strategic transport planning

and infrastructure planning and delivery. Anissa has a mix of private sector experience as

well as state and local government.

Risk management and insurance

Infrastructure NSW has appropriate structures and processes to identify and manage

material risks to its strategic and operational objectives.

Under the Model Charter adopted by Infrastructure NSW’s Audit and Risk Management

Committee, the Committee will ensure Infrastructure NSW operates with appropriate and

effective risk management and control frameworks and processes and ensure it has a

performance management framework that is linked to organisational objectives and

outcomes. The internal audit function of Infrastructure NSW is outsourced to external

advisors OCM.

Infrastructure NSW uses the NSW Treasury Managed Fund for its insurance requirements

including workers’ compensation, public liability, property and miscellaneous items. During

2017-18 there were no claims made against any of these insurance categories.


Financial statements Infrastructure NSW


Infrastructure NSW

Financial Statements for the year ended 30 June 2018


Infrastructure NSW Statement of comprehensive income

for the year ended 30 June 2018

2

Consolidated INSW

Actual

Budget

Actual

Actual

Budget

Actual 2018 2018 2017 2018 2018 2017 Notes $'000 $'000 $'000 $'000 $'000 $'000

Expenses excluding losses

Operating expenses

Employee related 2(a) 8,172 5,011 8,178 - - - Other operating expenses 2(b) 27,488 48,870 15,598 27,488 48,870 15,598

Depreciation and amortisation expenses 2(c) 214 344 131 214 344 131 Personnel services 2(d) - - - 7,734 4,969 6,859 Other expenses-Projects NSW 2(e) 195,878 376,605 66,634 195,878 376,605 66,634

Total Expenses excluding losses 231,752 430,830 90,541 231,314 430,788 89,222

Revenue Sale of goods and services 3(a) 204,290 381,137 72,913 204,290 381,137 72,913 Other income 3(b) (1) - 1 (1) - 1 Grants and contributions 3(c) 32,789 49,192 21,130 32,622 49,192 20,286 Acceptance by the Crown Entity of employee benefits 3(d) 271 42 475 - - -

Total Revenue 237,349 430,371 94,519 236,911 430,329 93,200

Gain / (loss) on disposal 4 (34) - - (34) - -

Net Result 5,563 (459) 3,978 5,563 (459) 3,978 Other comprehensive income

Total other comprehensive income - - - - - - TOTAL COMPREHENSIVE INCOME 5,563 (459) 3,978 5,563 (459) 3,978 The accompanying notes form part of these financial statements.


Infrastructure NSW Statement of financial position

as at 30 June 2018

3

Consolidated INSW

Actual

Budget

Actual

Actual

Budget

Actual 2018 2018 2017 2018 2018 2017 Notes $'000 $'000 $'000 $'000 $'000 $'000

ASSETS

Current Assets Cash and cash equivalents 6 41,481 2,712 23,238 41,481 2,712 23,238 Receivables 7 12,105 4,000 11,666 12,105 4,000 11,666 Total Current Assets 53,586 6,712 34,904 53,586 6,712 34,904

Non-Current Assets Plant and equipment 8 350 856 518 350 856 518 Intangible assets 9 21 625 59 21 625 59 Total Non-Current Assets 371 1,481 577 371 1,481 577 Total Assets 53,957 8,193 35,481 53,957 8,193 35,481

LIABILITIES

Current Liabilities Payables 10 30,082 3,883 17,262 31,015 4,581 18,129 Provisions 11 914 698 852 - - - Prepaid Income 11,583 287 11,556 11,583 287 11,556 Total Current Liabilities 42,579 4,868 29,670 42,598 4,868 29,685

Non-Current Liabilities Provisions 11 141 133 137 122 133 122 Other - - - - - - Total Non-Current Liabilities 141 133 137 122 133 122 Total Liabilities 42,720 5,001 29,807 42,720 5,001 29,807 Net Assets 11,237 3,192 5,674 11,237 3,192 5,674

EQUITY Accumulated funds 11,237 3,192 5,674 11,237 3,192 5,674 Total Equity 11,237 3,192 5,674 11,237 3,192 5,674 The accompanying notes form part of these financial statements.


Infrastructure NSW Statements of changes in equity for the year ended 30 June 2018

4

Consolidated / INSW Accumulated

Funds Total $'000 $'000 Balance at 1 July 2017 5,674 5,674

Net result for the year 5,563 5,563 Total comprehensive income for the year 5,563 5,563

Balance at 30 June 2018

11,237 11,237

Consolidated / INSW Accumulated

Funds Total $'000 $'000 Balance at 1 July 2016 1,696 1,696

Net result for the year 3,978 3,978 Total comprehensive income for the year 3,978 3,978

Balance at 30 June 2017

5,674 5,674


Infrastructure NSW Statement of cash flows


5

Consolidated INSW

Actual

Budget

Actual

Actual

Budget

Actual 2018 2018 2017 2018 2018 2017 Notes $'000 $'000 $'000 $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments Employee related (7,705) (4,969) (7,491) - - - Other (212,963) (429,886) (79,533) (220,501) (434,855) (86,180) Total Payments (220,668) (434,855) (87,024) (220,501) (434,855) (86,180)

Receipts Sale of goods and services 203,877 381,137 73,413 203,877 381,137 73,413 Interest received - - - - - - Grants and contributions 32,789 49,192 19,786 32,622 49,192 19,786 Other 2,285 2,448 13,011 2,285 2,448 12,167 Total Receipts 238,951 432,777 106,210 238,784 432,777 105,366

NET CASH FLOWS FROM OPERATING ACTIVITIES 15 18,283 (2,078) 19,186 18,283 (2,078) 19,186

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment (40) (880) (403) (40) (880) (403) Purchases of intangible assets - - (28) - - (28)

NET CASH FLOWS FROM INVESTING ACTIVITIES (40) (880) (431) (40) (880) (431)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 18,243 (2,958) 18,755 18,243 (2,958) 18,755 Opening cash and cash equivalents 23,238 5,670 4,483 23,238 5,670 4,483

CLOSING CASH AND CASH EQUIVALENTS 6 41,481 2,712 23,238 41,481 2,712 23,238 The accompanying notes form part of these statements.


Infrastructure NSW Notes to the financial statements for the year ended 30 June 2018

6

1 Summary of Significant Accounting Policies

(a) Reporting entity

Infrastructure New South Wales (hereafter referred to as INSW) was established in July 2011 as a statutory authority under the Infrastructure NSW Act 2011. It provides independent advice to help the Government identify and prioritise critical public infrastructure across NSW. INSW is a reporting entity, comprising all the entities under its control, namely INSW Staff Agency (Staff Agency).

The Staff Agency is a public service agency established under the Administrative Arrangements Order 2014 and is pursuant to Part 2 of Schedule 1 of the Government Sector Employment Act 2013 (formerly the Infrastructure Special Officers Group (INSW Division) established under the former Public Sector Employment Management Act 2002). The Staff Agency comprises persons who are employed under the Government Sector Employment Act 2013 to enable INSW to exercise its functions.

In the process of preparing the consolidated financial statements for the economic entity consisting of the controlling and controlled entities, all inter-entity transactions and balances have been eliminated.

INSW is a budget dependent Statutory Authority. INSW is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units. The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

These consolidated financial statements for the year ended 30 June 2018 have been authorised for issue by the Chief Executive Officer on 21st September 2018.

(b) Basis of preparation

INSW's financial statements are general purpose financial statements which have been prepared on an accrual basis and in accordance with:

Applicable Australian Accounting Standards (which include Australian Accounting Interpretations)

The requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Regulation 2015 and

Financial Reporting Directions mandated by the Treasurer.

Plant and equipment are measured at fair value. Other financial statements items are prepared in accordance with the historical cost convention except where specified otherwise.

Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency, which is the entity's presentation and functional currency.

(c) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(d) Insurance

INSW's insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claims experience.



1 Summary of Significant Accounting Policies (cont'd)

7

(e)

Accounting for the Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of GST, except that:

The amount of GST incurred by INSW as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of an asset's cost of acquisition or as part of an item of expense and

Receivables and payables are stated with the amount of GST included.

Cash flows are included in the statement of cash flow on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

(f) Income recognition

Income is measured at the fair value of the consideration or contribution received or receivable. Comments regarding the accounting policies for the recognition of income are discussed below.

(i)

Grants revenue

Income from grants (other than contribution by owners) is recognised when the entity obtains control over the contribution. The entity is deemed to have assumed control when the grant is received or receivable.

Contributions are recognised at their fair value. Contributions of services are recognised when and only when a fair value of those services can be reliably determined and the services would be purchased if not donated.

(ii)

Sale of goods*

Revenue from the sale of goods is recognised as revenue when INSW transfers the significant risks and rewards of ownership of the assets.

(iii)

Rendering of services*

Revenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date).

(iv)

Prepaid Income

Prepaid Income represents unearned income for projects being delivered on behalf of other NSW government agencies by the project delivery unit of INSW. INSW issues quarterly claims in advance based on forecast expenditure to these agencies for which the projects are being delivered. INSW draws down against this claim as expenditure incurred. The balance remaining at the end of each quarter is represented as income received in advance.

*

The Sale of goods and services disclosed in the Statement of Comprehensive Income represents recovery from other NSW government agencies for the following activities undertaken by INSW:

o Projects being delivered on their behalf by the project delivery unit.

o Performing the investor assurance role including resourcing costs of the team and

management of gateway reviews

o Strategic assessments where costs and benefits are shared.




8

(g)

Property, plant and equipment

(i) Acquisitions of property, plant and equipment

Property, plant and equipment acquired are initially recognised at cost and subsequently measured at fair value less accumulated depreciation and impairment. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.

Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent; i.e. the deferred payment amount is effectively discounted at an asset-specific rate.

(ii) Capitalisation thresholds

Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised.

(iii) Restoration cost

The present value of the expected cost for the restoration or cost of dismantling of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

(iv) Maintenance

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement or enhancement of a part or a component of an asset, in which case the costs are capitalised and depreciated.

(v) Depreciation of property, plant and equipment

Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to INSW.

All material separately identifiable components of assets are depreciated over their useful lives.

2018 2017 Depreciation Rates % Rate % Rate

Plant & Equipment Office furniture and fittings 14* 14 Computer equipment and hardware 33* 25 General plant and equipment 25* 25 Leasehold improvements depreciated over the shorter of useful life

of the asset or period of the lease * The estimated useful life of assets in this classification has been revised to better reflect the rate of obsolescence on this asset class

(vi) Revaluation of property, plant and equipment

Physical non-current assets are valued in accordance with the 'Valuation of Physical Non-Current Assets at Fair Value' Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair Value Measurement, AASB 116 Property, Plant and Equipment and AASB 140 Investment Property.




9

Non-specialised assets with short useful lives are measured at depreciated historical cost, as an approximation of fair value. The entity has assessed that any difference between fair value and depreciated historical cost is unlikely to be material.

Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use.

Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset's fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost.

As a not-for-profit entity, revaluation increments and decrements are offset against one another within a

class of non-current assets, but not otherwise.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end.

(vii) Impairment of property, plant and equipment

As a not-for-profit entity with no cash generating units, impairment under AASB 136 Impairment of Assets is unlikely to arise. As property, plant and equipment is carried at fair value, impairment can only arise in the rare circumstances where the costs of disposal are material. Specifically, impairment is unlikely for not-for-profit entities given that AASB 136 modifies the recoverable amount test for non-cash generating assets of not-for-profit entities to the higher of fair value less costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value.

INSW assesses, at each reporting date, whether there is an indication that an asset may be impaired. If an indication exists, or when annual impairment testing for an asset is required, the entity estimates the asset's recoverable amount. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

(h) Leases

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and rewards.

Operating lease payments are recognised as an operating expense in the Statement of Comprehensive Income on a straight-line basis over the lease term.

(i) Intangible assets

INSW recognises intangible assets only if it is probable that future economic benefits will flow to INSW and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

Intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for INSW’s intangible assets, the assets are carried at cost less any accumulated amortisation.

All research costs are expensed. Development costs are only capitalised when certain criteria are met.

INSW’s intangible assets are amortised using the straight-line method over a period of four years.




10

Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.

(j) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability orequity instrument of another entity.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directlyattributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets andfinancial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financialassets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to theacquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediatelyin net result.

The entity determines the classification of its financial assets and liabilities after initial recognition and, whenallowed and appropriate, re-evaluates this at each financial year end.

(i) Financial assets

Financial assets are classified, at initial recognition, as financial assets at fair value through profit orloss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, or asderivatives designated as hedging instruments in an effective hedge, as appropriate. The classificationdepends on the nature and purpose of the financial assets and is determined at the time of initialrecognition.

Loans and receivables

Trade and other receivables that have fixed or determinable payments that are not quoted in anactive market are classified as loans and receivables. Loans and receivables are measured atamortised cost using the effective interest method, less any impairment. Changes are recognised inthe net result for the year when impaired, derecognised or though the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amountunless the effect of discounting is material.

Impairment of financial assets

All financial assets are subject to an annual review for impairment. Financial assets are consideredto be impaired when there is objective evidence that, as a result of one or more events thatoccurred after the initial recognition of the financial assets, the estimated future cash flows havebeen affected.

For certain categories of financial assets, such as trade receivable, the entity first assesses whetherimpairment exists individually for financial assets that are individually significant, or collectively forfinancial assets that are not individually significant. Assets are assessed for impairment on acollective basis if they were assessed not to be impaired individually.

For financial assets carried at amortised cost, the amount of the allowance is the differencebetween the asset's carrying amount and the present value of estimated future cash flow,discounted at the effective interest rate. The amount of the impairment loss is recognised in the netresult for the year.

Any reversals of impairment losses are reversed through the net result for the year, where there isobjective evidence. Reversals of impairment losses of financial assets carried at amortised costcannot result in a carrying amount that exceeds what the carrying amount would have been hadthere not been an impairment loss.




11

(ii) Financial liabilities

Financial liabilities are classified as at amortised cost.

Financial liabilities at amortised cost (including borrowings and trade payables)

Financial liabilities at amortised cost are initially measured at fair value, net of transaction costs. These are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Payables represent liabilities for goods and services provided to the agency and other amounts. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(iii) De-recognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assetsexpire; or if the entity transfers the financial asset:

where substantially all the risks and rewards have been transferred; or

where the agency has not transferred substantially all the risks and rewards, if the agency hasnot retained control.

Where the agency has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset continues to be recognised to the extent of the agency's continuing involvement in the asset. In that case, the agency also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the agency has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the entity could be required to repay.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the net result.

(iv) Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Statement ofFinancial Position if there is a currently enforceable legal right to offset the recognised amounts andthere is an intention to settle on a net basis, or to realise the assets and settle the liabilitiessimultaneously.




12

(k) Employee benefits and other provisions

Employee benefits are provided to the INSW by the INSW Staff Agency. The INSW recognises personnel services expenses and provisions for these benefits.

(a)

Salaries and wages, annual leave and sick leave

Salaries and wages (including non-monetary benefits) and paid sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the service are recognised and measured at the undiscounted amounts of the benefits.

Annual leave is not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. As such, it is required to be measured at present value in accordance with AASB 119 Employee Benefits (although short-cut methods are permitted). Actuarial advice obtained by Treasury has confirmed that the use of a nominal approach plus the annual leave entitlements accrued while taking annual leave (using 7.9% of the nominal value of annual leave) can be used to approximate the present value of the annual leave liability. The entity has assessed the actuarial advice based on the entity’s circumstances and has determined that the effect of discounting is immaterial to annual leave.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

(b)

Long service leave and superannuation

INSW's liabilities for long service leave and defined benefit superannuation are assumed by the Crown Entity. INSW accounts for the liability as having been extinguished resulting in the amount assumed being shown as part of the non-monetary revenue item described as ''Acceptance by the Crown Entity of employee benefits and other liabilities''.

Long service leave is measured at the present value of expected future payments to be made in in respect of services provided up to the reporting date. Consideration is given to certain factors based on actuarial review, including expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using commonwealth government bond rate at the reporting date.

The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer's Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees' salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees' superannuation contributions.

(c)

Consequential on-costs

Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. This includes outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax.




13

(l) Other Provisions

Provisions are recognised when: the entity has a present legal or constructive obligation as a result of a past event; it isprobable that an out flow of resources will be required to settle the obligation; and a reliable estimate can be made of theamount of obligation. When the entity expects some or all of the provision to be reimbursed, for example, under aninsurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtuallycertain. The expense relating to a provision is presented net of any reimbursement in the Statement of ComprehensiveIncome.

(m) Equity and reserves

(i) Accumulated Funds

The category 'Accumulated Funds' includes all current and prior period retained funds.

(n) Fair value hierarchy

Fair value hierarchy disclosure under AASB 13 Fair Value Measurement, is not required as INSW’s assets arenon-specialised short-live assets and measured at depreciated historical cost as a surrogate for fair value.

(o) Budgeted amounts

The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament inrespect of the reporting period. Subsequent amendments to the original budget (e.g. adjustment for transfer offunctions between entities as a result of Administrative Arrangement Orders) are not reflected in the budgetedamounts. Major variances between the original budgeted amounts and the actual amounts disclosed in thefinancial statements are explained in note 14.

(p) Comparative information

Except when an Australian Accounting Standard permits or requires otherwise, comparative information isdisclosed in respect of the previous period for all amounts reported in the financial statements.




14

(q) Changes in accounting policy, including new or revised Australian Accounting Standards

i) Effective for the first time in 2017-18

The accounting policies applied in 2017-18 are consistent with those of the previous financial year except for the following standards adopted for the first time in year ended 30 June 2018. The impact of these standards in the period of initial application is not material.

AASB 2016-1 Amendments to Australian Accounting Standards - Recognition of Deferred Tax Assets for Unrealised Losses

AASB 2016-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 107

AASB 2016-4 Amendments to Australian Accounting Standards - Recoverable Amount of Non Cash Generating Specialised Assets of Not for Profit Entities

AASB 2017-2 Amendments to Australian Accounting Standards - Further Annual Improvements 2014 2016 Cycle

ii) Issued but not yet effective

NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise. The following new Australian Accounting Standards have not been applied and are not yet effective (NSW TC 18-01).

AASB 9 financial instruments AASB 15, AASB 2014-5, AASB 2015-8 and 2016-3 regarding Revenue from Contracts with Customers AASB 16 Leases AASB 17 Insurance Contracts AASB 1058 Income of Not-for-profit Entities AASB 1059 Service Concession Arrangements: Grantors AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of

Share-based Payment Transactions AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 with AASB 4

Insurance Contracts AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit

Entities AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance

for Not-for-Profit Entities AASB 2017-1 Amendments to Australian Accounting Standards – Transfer of investment Property,

Annual Improvements 2014-2016 Cycle and Other Amendments AASB 2017-3 Amendments to Australian Accounting Standards – Clarifications to AASB 4 AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax

Treatments AASB2017-5 Amendments to Australian Accounting Standards – Effective Date of Amendments to

AASB 10 and AASB 128 and Editorial Corrections AASB2017-6 Amendments to Australian Accounting Standards – Prepayment Features with Negative

Compensation AASB2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and

Joint Ventures Interpretation 22 Foreign Currency Transactions and Advance Consideration Interpretation 23 Uncertainty over Income Tax Treatment

INSW anticipates that the adoption of these standards in the period of initial application will have no material impact of the financial statements.


Infrastructure NSWNotes to the financial statements for the year ended 30 June 2018

15

2 Expenses Excluding Losses

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

(a) Employee related expenses

Salaries and wages (including annual leave) 6,694 5,965 - - Superannuation - defined benefit plans - 29 - - Superannuation - defined contribution plans 524 425 - - Long service leave 265 434 - - Workers compensation insurance 7 15 - - Payroll tax and fringe benefit tax 404 400 - - Redundancy Payments 222 844 - - On-costs- annual leave and long service leave 56 66 - -

8,172 8,178 - -

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

(b) Other operating expenses include the following:

Auditor's remuneration - audit of the financial statements 83 82 83 82 Internal audit fees 126 83 126 83 Other contractors 9,085 8,142 9,085 8,142 Boards and Committees 156 174 156 174 Fees for services rendered 994 1,254 994 1,254 Insurance - public liability*** (2) 7 (2) 7 Operating lease rental expense - minimum lease payments 795 750 795 750 Other expenses 1,020 713 1,020 713Contracted services HNVFRMS Phase 1 ** 13,601 4,390 13,601 4,390 Contracted services SCCR** 1,627 - 1,627 - Maintenance expenses* 3 3 3 3

27,488 15,598 27,488 15,598

* There is no employee related maintenance expenses include in Note 2 (a).

** This includes all expenditure for this workstream.

*** The insurance expenditure disclosed in the note above incorporates the effect of a correction to accrued expenditure from the 2016 financial year. The actual insurance expenditure incurred in 2018 is $7k.

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

(c) Depreciation and amortisation expense

Depreciation Plant and Equipment 122 57 122 57 Leasehold improvements 74 57 74 57 Total depreciation 196 114 196 114

Amortisation Intangible 18 17 18 17

214 131 214 131



2 Expenses Excluding Losses (cont'd)

16

Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000

(d) Personnel services

Personnel services - - 7,734 6,859 - - 7,734 6,859

(e) Other expenses Projects NSW 195,878 66,634 195,878 66,634 195,878 66,634 195,878 66,634

Projects NSW 2018

($000) 2017

($000)

Sydney International Convention Exhibition and Entertainment Precinct 48 2,866

New Grafton Correctional Centre 22,504 12,977

Walsh Bay Arts Precinct 4,868 8,589

Western Sydney stadium 138,550 30,441

Anzac Memorial Centenary 23,224 10,079

Stadium Australia 442 1,498

Martin Place Siege Memorial 1,087 184

SFS Redevelopment 5,141 0

Sydney Modern (AGNSW) 14 0

Total 195,878 66,634 The expenses incurred for the Projects NSW are fully recoverable from other NSW government Agencies for projects being delivered on their behalf by the project delivery unit of Infrastructure NSW.



17

3 Revenue


(a) Sale of goods and services Rendering of services - Projects NSW 194,791 66,450 194,791 66,450 Rendering of services - Investor Assurance 8,921 5,714 8,921 5,714 Rendering of services – Others 578 749 578 749 204,290 72,913 204,290 72,913

Projects NSW 2018

($000) 2017

($000)

Sydney International Convention Exhibition and Entertainment Precinct 48 2,866

New Grafton Correctional Centre 22,504 12,977

Walsh Bay Arts Precinct 4,868 8,589

Western Sydney stadium 138,550 30,441

Anzac Memorial Centenary 23,224 10,079

Stadium Australia 442 1,498

SFS Redevelopment 5,141 0

Sydney Modern (AGNSW) 14 0

Total 194,791 66,450



18

3 Revenue (cont'd) Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000

(b) Other Income Other Income (1) 1 (1) 1 (1) 1 (1) 1

(c) Grants and contributions Grants received from budget dependent agencies 13,107 13,804 13,107 13,804 Grants from the Climate Change Fund 15,978 5,982 15,978 5,982 Others – Redundancy 167 844 - - Grant from the Restart NSW Fund 2,765 - 2,765 - Grant for Martin Place Siege Memorial 772 500 772 500 32,789 21,130 32,622 20,286

(d) Acceptance by the Crown Entity of employee benefit Long Service Leave 271 475 - - 271 475 - -

4 Gain / (Loss) on Disposal Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000

Gain / (loss) on disposal of plant and equipment and intangible assets

Proceeds from disposal - - - - Less: Written down value of assets disposed (34) - (34) - Net gain / (loss) on disposal of plant and equipment and intangible assets (34) - (34) -



19

5 Program group statements for the year ended 30 June 2018

INSW has two program groups being: Strategy, Planning & Assurance, which incorporates the following:

- INSW core operations, Strategy & Planning, Investor Assurance and management of the Restart NSWFund

- Special projects including the implementation of the Hawkesbury Nepean Flood Management Strategyand the South Creek Corridor Sector Review

Project Delivery, which incorporates those infrastructure projects being delivered on request from the Premierunder INSW’s Act including through a Project Authorisation Order or Delegation.

Entity’s Expenses & Income Project Delivery

Strategy, Planning and

Assurance Total 2018 2018 2018 $'000 $'000 $'000


Operating expenses Employee related - 8,172 8,172 Other operating expenses - 27,488 27,488

Depreciation and amortisation - 214 214 Other expenses – Project NSW 195,878 - 195,878

Total expenses excluding losses 195,878 35,874 231,752

Revenue

Sale of goods and services 194,791 9,499 204,290 Other revenue - (1) (1) Grants and contributions 772 32,017 32,789 CFE Accepted Liabilities - 271 271

Total Revenue 195,563 41,786 237,349

Gain / (loss) on disposal - (34) (34)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR (315) 5,878 5,563



20

5 Program group statements for the year ended 30 June 2018 (cont'd)

Entity’s Assets & Liabilities Project Delivery

Strategy, Planning and Assurance Total

2018 2018 2018 $'000 $'000 $'000ASSETS

Current Assets Cash and cash equivalents 27,979 13,502 41,481 Receivables 9,539 2,566 12,105 Total Current Assets 37,518 16,068 53,586

Non-Current Assets Plant and equipment - 350 350 Intangible assets 21 21 Total Non-Current Assets - 371 371 Total Assets 37,518 16,439 53,957

LIABILITIES

Current Liabilities Payables 25,896 4,186 30,082 Provisions 39 875 914 Prepaid Income 11,583 - 11,583 Total Current Liabilities 37,518 5,061 42,579

Non-Current Liabilities Provisions - 141 141 Other - - - Total Non-Current Liabilities - 141 141 Total Liabilities 37,518 5,202 42,720 Net Assets - 11,237 11,237



21

6 Current Assets - Cash and Cash Equivalents a) Cash


Cash at bank and on hand 41,481 23,238 41,481 23,238 41,481 23,238 41,481 23,238 For the purposes of the statement of cash flows, cash and cash equivalents include cash at bank and cash on hand. Cash and cash equivalent assets recognised in the statement of financial position are reconciled at the end of the financial year to the statements of cash flows as follows: Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000 Cash and cash equivalents (per statement of financial position) 41,481 23,238 41,481 23,238 Closing cash and cash equivalents (per statements of cash flows) 41,481 23,238 41,481 23,238 Refer Note 16 for details regarding credit risk, liquidity risk, and market risk arising from financial instruments. b) Financing facilities available A Credit facility of $0.05m and a transaction negotiation authority of $1.0m are held with the Government's banker, Westpac Banking Corporation, to facilitate routine transactions.

7 Current Assets - Receivables

Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000 Sale of goods and services 2,525 9,176 2,525 9,176 Other 92 - 92 - Investor Assurance 1,387 1,007 1,387 1,007 Projects NSW 8,101 1,483 8,101 1,483 12,105 11,666 12,105 11,666 Sale of goods and services represent invoiced amounts and includes recoveries from other NSW government agencies for projects being delivered on their behalf by either the project delivery unit of Infrastructure NSW and/or the investor assurance unit. The amounts disclosed in Project NSW and Investor Assurance represent expenditure incurred by INSW but not yet invoiced. Details regarding credit risk of receivables that are neither past due nor impaired are disclosed in Note 16.



22

8 Non-Current Assets - Plant and Equipment Consolidated / INSW

Plant and

EquipmentLeasehold

Improvement Total $'000 $'000 $'000

At 1 July 2017 - fair value Gross carrying amount 605 842 1,447 Accumulated depreciation (316) (613) (929) Net carrying amount 289 229 518

At 30 June 2018 - fair value Gross carrying amount 546 842 1,388 Accumulated depreciation (352) (686) (1,038) Net carrying amount 194 156 350 Reconciliation A reconciliation of the carrying amount of each class of plant and equipment at the beginning and end of the current reporting period is set out below.

Plant and

EquipmentLeasehold


Year ended 30 June 2018 Net carrying amount at start of year 289 229 518 Additions 40 - 40 Disposals (12) - (12) Depreciation expense (122) (74) (196) Net carrying amount at end of year 195 155 350

Plant and

EquipmentLeasehold


At 1 July 2016 - fair value Gross carrying amount 375 668 1,043 Accumulated depreciation (258) (556) (814) Net carrying amount 117 112 229

At 30 June 2017 - fair value Gross carrying amount 605 842 1,447 Accumulated depreciation (316) (613) (929) Net carrying amount 289 229 518 Reconciliation A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the previous reporting period is set out below.

Plant and

EquipmentLeasehold


Year ended 30 June 2017 Net carrying amount at start of year 117 112 229 Additions 229 174 403 Disposals - - - Depreciation expense (57) (57) (114) Write back on disposals - - - Net carrying amount at end of year 289 229 518



23

9 Intangible Assets

Software (including IT

Network design)

$'000

Consolidated / INSW At 1 July 2017 Cost (gross carrying amount) 186 Accumulated amortisation and impairment (127) Net carrying amount 59

At 30 June 2018 Cost (gross carrying amount) 120 Accumulated amortisation and impairment (99) Net carrying amount 21

Year ended 30 June 2018 Net carrying amount at start of year 59 Additions - Disposals (21) Amortisation (recognised in 'depreciation and amortisation') (17) Net carrying amount at end of year 21

Software (including IT

Network design)

$'000

At 1 July 2016 Cost (gross carrying amount) 158 Accumulated amortisation and impairment (110) Net carrying amount 48

At 30 June 2017 Cost (gross carrying amount) 186 Accumulated amortisation and impairment (127) Net carrying amount 59

Year ended 30 June 2017 Net carrying amount at start of year 48 Additions 28 Amortisation (recognised in 'depreciation and amortisation') (17) Net carrying amount at end of year 59



24

10 Current Liabilities – Payables

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

Accrued salaries, wages and on-costs 290 161 - - Creditors 25,808 15,404 25,681 15,308 Goods and Services Tax payable 3,984 1,697 3,984 1,697 Personnel services - - 1,350 1,124

30,082 17,262 31,015 18,129

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables, are disclosed in Note 16.

11 Current /Non-Current Liabilities - Provisions

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

Current Employee benefits and related on-costs Annual leave 666 647 - - Long service leave 138 107 - - Payroll tax 110 98 - - Total provisions 914 852 - -

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

Non-current Employee benefits and related on-costs Long service leave 19 15 - -

19 15 - -

Non-current Other provisions Restoration costs 122 122 122 122

122 122 122 122 Total provisions 141 137 122 122

Consolidated INSW

2018 2017 2018 2017 $'000 $'000 $'000 $'000

Aggregate employee benefits and related on-costs Provisions – current 914 852 - - Provisions - non-current 19 15 - - Accrued salaries, wages and on-costs (Note 10) 290 161 - -

1,223 1,028 - -



25

12 Commitments for Expenditure Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000

Operating Lease Commitments

Future non-cancellable operating lease rentals not provided for and payable Not later than one year 907 864 907 864 Later than one year and not later than five years 386 1,191 386 1,191 Total (including GST) 1,293 2,055 1,293 2,055

The total commitments above includes input tax credits of $ 118K ($187K for 2017) that are expected to be recoverable from the Australian Taxation Office. INSW’s current office lease term expires in November 2019 (and is expected to be renewed but is not disclose in the figures above as not yet confirmed).

13 Contingent Liabilities and Contingent Assets INSW is not aware of any contingent liabilities and contingent assets associated with its operations.



26

14 Budget Review

General Note The budget amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting period. Subsequent amendments to the original budget (e.g. adjustment for transfer of functions between entities as a result of Administrative Arrangement Orders, additional budget approvals during the year) are not reflected in the budgeted amounts. Major variances between the original budgeted amounts and the actuals disclosed in the financial statements are explained below. To assist in the understanding of this note, below is a categorisation of INSW’s functions during the reporting period:

INSW – Strategy and Planning, management of the Restart NSW Fund and the INSW corporate function. Investor Assurance – Management and delivery of the Infrastructure Investor Assurance Framework Projects NSW – Procurement and delivery of projects at the request of the Premier under the Infrastructure NSW

Act through a Project Authorisation Order or Delegation. Hawkesbury Nepean Valley Flood Risk Management Strategy – Developing a business case for consideration by

the NSW Government and implementation of the strategy South Creek Corridor Review – Identify strategic options for consideration by the NSW Government for land use

and water management in the South Creek catchment to develop the Western Parkland City

Net Result The Net Result was higher than budget by $6m primarily due to:

Workstream Budget

$’000 Actuals

$’000 Variance

$’000 Comment

INSW (459) 1,398 (1,857)

Additional funding from other NSW Government entities during the financial year to deliver on Strategy and Planning related reviews/advice

Reclassification of capital budget for ICT utilised for an increase to operational costs resulting from INSW's growth. This was funded from recurrent grant

Investor Assurance - 964 (964)

Committed expenditure which will be utilised in 2018-19

Funded through recovery from other NSW Government entities

Projects NSW - (315) 315

Carry-forward from 2016-17 for the Martin Place Siege Memorial Project not utilised in 2017-18

Funded through recovery/prepayment from other NSW Government entities

Hawkesbury Nepean Flood Management Strategy

- 2,378 (2,378)

Committed expenditure which will be utilised in 2018-19

Funded from the Climate Change Fund

South Creek Corridor Review

- 1,139 (1,139) Committed expenditure which will be utilised in

2018-19 Funded from Restart NSW

Total (459) 5,564 (6,023)



27

The Net Result variance is further explained by the following variance analysis of Expenses and Revenue: Expenses Expenses were lower than budgeted by - $196.5m primarily due to:

Workstream Budget $’000

Actuals $’000

Variance $’000

Comment

INSW/Investor Assurance

5,011 8,172 (3,161)

Variance in employee related expenditure due to a classification error in the budgeted figure. This has been corrected in the forward estimates

There is minimal variance in Actual spend from 2017 to 2018

Projects NSW 376,605 195,878 180,727

Timing of the Walsh Bay Arts Precinct project which was delayed due to a planning appeal and subsequent submission of a revised planning approval

The balance has been carried forward in the budget forward estimates


34,887 15,978 18,909

Revised timing in the HNVFMS workstream. The balance has been carried forward in the

budget forward estimates

Other 14,327 11,724 2,603 Variances in other categories

Total 430,830 231,752 196,475

.

Revenue Revenue was lower than budgeted by -$193m primarily due to:

Workstream Budget

$’000 Actuals

$’000 Variance

$’000 Comment

INSW 12,848 14,113 (1,265)

Additional funding during the financial year for Strategy and Planning related reviews/advice

Funded from recurrent and special grant allocations through the Department of Premier and Cabinet

Projects NSW 376,605 195,563 181,042

Timing of the Walsh Bay Arts Precinct project (mentioned above)

Funded through recovery from other NSW Government entities


34,887 15,978 18,909

Variance attributable to a revision of timing Funded from the Climate Change Fund through the

Office of Environment and Heritage

Other 6,031 11,695 (5,664) Variance in other categories.

Total 430,371 237,349 193,022

Receivables and Payables Both of the receivables and payables variances are attributable to the volume of transactions associated with the Projects NSW and Investor Assurance (specifically Gateway Review expenditure which is recovered from other NSW Government



28

entities) workstreams. Receivables was +8.1m higher than budgeted and payables was +26.2m higher than budgeted. Cash and Prepaid Income Cash was +38.8m higher than budgeted prepaid income was +11.2m higher than budgeted, both of which were largely attributable to the prepayment approach adopted for Projects NSW.

15 Reconciliation of Cash Flows from Operating Activities to Net Result Consolidated INSW 2018 2017 2018 2017 $'000 $'000 $'000 $'000

Net cash used on operating activities 18,283 19,186 18,283 19,186 Depreciation and amortisation (214) (131) (214) (131) Decrease / (increase) in provisions (66) (158) - - Increase / (decrease) in receivables 440 4,518 440 4,518 Decrease / (increase) in payables (12,819) (11,268) (12,885) (11,426) Decrease / (increase) in other liabilities (27) (8,169) (27) (8,169) Net gain / (loss) on sale of plant and equipment and intangible assets (34) - (34) - Net result 5,563 3,978 5,563 3,978



29

16 Financial Instruments INSW's principal financial instruments are outlined below. These financial instruments arise directly from INSW's operations or are required to finance INSW's operations. INSW's principal financial instruments are cash deposits held within the NSW Treasury Banking System, short term receivables and payables. These instruments expose INSW primarily to interest rate risk on cash balances held within the NSW Treasury Banking System and credit risk on short term receivables. INSW does not enter into or trade financial instruments for speculative purposes and does not use financial derivatives. The Chief Executive Officer has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing risk. Risk management policies are established to identify and analyse the risks faced by INSW, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by Management on a periodic basis. (a) Financial instrument categories Financial Assets

Note

Category

Carrying Amount

Carrying Amount

Class: 2018 2017 $'000 $'000 Consolidated Cash and cash equivalents 6 N/A 41,481 23,238 Receivables1 7 Receivables (at amortised cost) 12,105 11,666 Financial Liabilities

Note

Category

Carrying Amount

Carrying Amount

Class: 2018 2017 $'000 $'000 Consolidated Payables2 10 Financial liabilities measured at

amortised cost 26,098 15,565

Financial Assets

Note

Category

Carrying Amount

Carrying Amount

Class: 2018 2017 $'000 $'000 INSW Cash and cash equivalents 6 N/A 41,481 23,238 Receivables1 7 Loans and receivables (at

amortised cost) 12,105 11,666

Financial Liabilities

Note

Category

Carrying Amount

Carrying Amount

Class: 2018 2017 $'000 $'000 INSW Payables2 10 Financial liabilities measured at

amortised cost 27,031 16,432

Notes : 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).



16 Financial Instruments (cont'd)

30

(b) Credit Risk

Credit risk arises from the financial assets of INSW, including cash and receivables. No collateral is held by INSW. INSW has not granted any financial guarantees.

Credit risk arises when there is the possibility of INSW's debtors defaulting on their contractual obligations, resulting in a financial loss to INSW. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment).

Cash

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthly average NSW Treasury Corporation (TCorp) 11am unofficial cash rate, adjusted for a management fee to NSW Treasury.

Receivables - trade debtors

All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer's Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that INSW will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors. Sales are made on 30 day terms.

INSW is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. There are no debtors which are currently not past due or impaired whose terms have been renegotiated.

The only financial assets that are past due or impaired are ''sales of goods and services'' in the ''receivables'' category of the statement of financial position.

$'000 Total1,2 Past due but not

impaired1,2 Considered impaired1,2

Consolidated 2018 < 3 months overdue 89 89 - 3 months – 6 months overdue 65 65 - > 6 months overdue - - -

Consolidated 2017 < 3 months overdue 3,407 3,407 - 3 months – 6 months overdue 279 279 - > 6 months overdue - - -

Notes :

1. Each column in the table reports "gross receivables".

2. The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 7 and excludesreceivables that are not past due and not impaired. Therefore, the "total" will not reconcile to the receivables totalrecognised in the statement of financial position.




31

(c) Liquidity risk Liquidity risk is the risk that INSW will be unable to meet its payment obligations when they fall due. INSW continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSW TC 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers, where payment is not made within the specified time period, simple interest must be paid automatically unless an existing contract specifies otherwise. For payments to other suppliers, the Head of an authority (or a person appointed by the Head of an authority) may automatically pay the supplier simple interest. No interest was paid during the year (2017 Nil). The table below summarises the maturity profile of INSW's financial liabilities, together with the interest rate exposure. Maturity Analysis and interest rate exposure of financial liabilities

$'000 Interest Rate

Exposure Maturity Dates

Nominal Amount Non-interest

bearing < 1 yr 1-5 yrs > 5 yrs

Consolidated 2018 Payables1: Accrued salaries, wages and on-costs

290 290 290 - -

Creditors 25,808 25,808 25,808 - - 26,098 26,098 26,098 - -

Consolidated 2017 Payables1: Accrued salaries, wages and on-costs

161 161 161 - -

Creditors 15,404 15,404 15,404 - - 15,565 15,565 15,565 - -

$'000 Interest Rate




INSW 2018 Payables1: Creditors 27,031 27,031 27,031 - - 27,031 27,031 27,031 - -

INSW 2017 Payables1: Creditors 16,432 16,432 16,432 - - 16,432 16,432 16,432 - -




32

Note: 1. The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date on which the entity can be required to pay. The tables include both interest and principal cash flows and therefore will not reconcile to the statement of financial position. (d) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. INSW's exposure to market risk is primarily through interest rates on cash and cash equivalents. INSW has no exposure to foreign currency risk and does not enter into commodity contracts. The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk. A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is structural change in the level of interest rate volatility. INSW's exposure to interest rate risk is set out below. Interest rate risk Exposure to interest rate risk arises primarily through INSW's interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp. INSW does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale. Therefore, for these financial instruments, a change in interest rates would not affect profit or loss or equity. A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. INSW's exposure to interest rate risk is set out below. -1% +1% Profit Equity Profit Equity

Consolidated Carrying Amount $'000 $'000 $'000 $'000

2018 Financial assets Cash and cash equivalents 41,481 (415) (415) 415 415 Receivables1 12,105 - - - - Financial liabilities Payables2 26,098 - - - - Total (415) (415) 415 415


-1% +1% Profit Equity Profit Equity

INSW Carrying Amount $'000 $'000 $'000 $'000





33

-1% +1% Profit Equity Profit Equity

INSW Carrying Amount

$'000 $'000 $'000 $'000


Notes : 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7).

2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).

(e) Fair value measurement

(i) Fair value compared to carrying amount Financial instruments are generally recognised at cost. The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of many of the financial instruments.

17 Related Party Disclosures

In accordance with AASB 124 related Party Disclosure, key management personnel are those having authority and responsibility for planning, directing and controlling the activities of the entity

a. Compensation of key management personnel The entity’s key management personnel compensation details for the period ending June 2018 are as follows:

b. Transactions with related parties

During the year, INSW entered into transactions with NSW Government related entities that are controlled, jointly controlled or significantly influenced by NSW Government. These transactions are all at arm’s length and in the ordinary course of the business of INSW.

18 Events after the Reporting Period There are no events subsequent to balance date which affect the financial statements. End of audited financial statements.

Employee benefits:

2018 $‘000

2017 $‘000

Short term employee benefits 624 574 Other monetary allowances - - Non-monetary benefits - - Other long-term employee benefits 48 - Post-employment benefits - - Termination benefits - - Total remuneration 672 574


INDEPENDENT AUDITOR’S REPORT

Infrastructure NSW and Controlled Entity

To Members of the New South Wales Parliament

Opinion

I have audited the accompanying financial statements of Infrastructure NSW, which comprise the

Statement of comprehensive income for the year ended 30 June 2018, the Statement of financial

position as at 30 June 2018, the Statement of changes in equity and the Statement of cash flows for

the year then ended, notes comprising a Statement of Significant Accounting Policies and other

explanatory information. The consolidated entity comprises Infrastructure NSW and the entities it

controlled at the year’s end or from time to time during the financial year.

In my opinion, the financial statements:

• give a true and fair view of the financial position of Infrastructure NSW and the consolidated

entity as at 30 June 2018, and of their financial performance and cash flows for the year then

ended in accordance with Australian Accounting Standards

• are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and

the Public Finance and Audit Regulation 2015

My opinion should be read in conjunction with the rest of this report.

Basis for Opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the

standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’

section of my report.

I am independent of Infrastructure NSW and the consolidated entity in accordance with the

requirements of the:

• Australian Auditing Standards

• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for

Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of

New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an

Auditor-General

• mandating the Auditor-General as auditor of public sector agencies

• precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.


Other Information

Other information comprises the information included in Infrastructure NSW’s annual report for the

year ended 30 June 2018, other than the financial statements and my Independent Auditor’s Report

thereon. The Chief Executive Officer of Infrastructure NSW is responsible for the other information. At

the date of this Independent Auditor’s Report, the other information I have received comprise the

Statement by the Chief Executive Officer.

My opinion on the financial statements does not cover the other information. Accordingly, I do not

express any form of assurance conclusion on the other information.

In connection with my audit of the financial statements, my responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or my knowledge obtained in the audit, or otherwise appears to be materially

misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other

information, I must report that fact.

I have nothing to report in this regard.

The Chief Executive Officer’s Responsibilities for the Financial Statements

The Chief Executive Officer is responsible for the preparation and fair presentation of the financial

statements in accordance with Australian Accounting Standards and the PF&A Act, and for such

internal control as the Chief Executive Officer determines is necessary to enable the preparation and

fair presentation of the financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the financial statements, the Chief Executive Officer is responsible for assessing the

ability of Infrastructure NSW and the consolidated entity to continue as a going concern, disclosing as

applicable, matters related to going concern and using the going concern basis of accounting except

where operations will be dissolved by an Act of Parliament or otherwise cease.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objectives are to:

• obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error

• issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in

accordance with Australian Auditing Standards will always detect material misstatements.

Misstatements can arise from fraud or error. Misstatements are considered material if, individually or

in aggregate, they could reasonably be expected to influence the economic decisions users take

based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing

and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar3.pdf. The

description forms part of my auditor’s report.


http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf

My opinion does not provide assurance:

• that Infrastructure NSW or the consolidated entity carried out their activities effectively,

efficiently and economically

• about the assumptions used in formulating the budget figures disclosed in the financial

statements

• about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented

• about any other information which may have been hyperlinked to/from the financial statements.

Caroline Karakatsanis

Director, Financial Audit Services

25 September 2018

SYDNEY


Financial statements Infrastructure NSW Staff Agency


Infrastructure NSW Staff Agency

Financial Statements for the year ended 30 June 2018


Infrastructure NSW Staff Agency Statement of comprehensive income


-2-

Actual Actual 2018 2017 Notes $'000 $'000


Operating expenses Employee related expenses 2 8,172 8,178

Total Expenses excluding losses 8,172 8,178

Revenue Personnel services 3(a) 7,734 6,859 Redundancy 3(b) 167 844 Acceptance by the Crown Entity of employee benefit and other liabilities 3(c) 271 475

Total Revenue 8,172 8,178

Net result - -

Other comprehensive income

Total other comprehensive income - - TOTAL COMPREHENSIVE INCOME - - The accompanying notes form part of these financial statements.


Infrastructure NSW Staff Agency Statement of financial position

as at 30 June 2018

-3-

2018 2017 Notes $'000 $'000

ASSETS

Current Assets Receivables 4 1,350 1,124 Total Current Assets 1,350 1,124 Total Assets 1,350 1,124

LIABILITIES

Current Liabilities Payables 5 417 257 Provisions 6 914 852 Total Current Liabilities 1,331 1,109

Non-Current Liabilities Provisions 6 19 15 Total Non-Current Liabilities 19 15 Total Liabilities 1,350 1,124 Net Assets - -

EQUITY Accumulated funds - - Total Equity - -

The accompanying notes form part of these financial statements.


Infrastructure NSW Staff Agency Statement of changes in equity


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Accumulated

Funds Total $'000 $'000 Balance at 1 July 2017 - -

Net result for the year - - Total comprehensive income for the year - -

Balance at 30 June 2018 - -

Accumulated Funds $’000

Total $’000

Balance at 1 July 2016 - -

Net result for the year - - Total comprehensive income for the year - -

Balance at 30 June 2017 - -


Infrastructure NSW Staff Agency Statement of cash flows


-5-

Actual Actual 2018 2017 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES Employee related - - Personnel services - -

NET CASH FLOWS FROM OPERATING ACTIVITIES - -

NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS - - Opening cash and cash equivalents - -

CLOSING CASH AND CASH EQUIVALENTS - -

The accompanying notes form part of these financial statements.


Infrastructure NSW Staff Agency Notes to the financial statements for the year ended 30 June 2018

-6-

1 Summary of Significant Accounting Policies

(a) Reporting entity

The Infrastructure NSW Staff Agency (Staff Agency) is a public service agency established under the Administrative Arrangements Order 2014 and is pursuant to Part 2 of Schedule 1 of the Government Sector Employment Act 2013 (formerly the Infrastructure Special Officers Group (INSW Division) established under the former Public Sector Employment Management Act 2002). The Staff Agency comprises persons who are employed under the Government Sector Employment Act 2013 to enable Infrastructure New South Wales (INSW) to exercise its functions. It is domiciled in Australia and its principal office is at Level 15, Macquarie House, 167, Macquarie Street, Sydney 2000.

The Staff Agency's objective is to provide personnel services to INSW.

The Staff Agency is consolidated as part of INSW's consolidated financial statements. The Staff Agency is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units.

These financial statements for the year ended 30 June 2018 have been authorised for issue by the Chief Executive Officer on 21st September 2018.

(b) Basis of preparation

The Staff Agency's financial statements are general purpose financial statements which have been prepared on an accrual basis in accordance with:

applicable Australian Accounting Standards (which include Australian Accounting Interpretations)

the requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Regulation 2015 and

the Financial Reporting Directions mandated by the Treasurer.

Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency, which is the entity's presentation and functional currency.

(c) Statement of compliance

The Staff Agency's financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(d) Income recognition

Income is measured at the fair value of the consideration or contribution received or receivable.

Income from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised.




-7-

(e) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in net result.

The Infrastructure NSW Staff Agency determines the classification of its financial assets and liabilities after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.

(i)

Financial assets

Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets at fair value through profit or loss

The Infrastructure NSW Staff Agency subsequently measures financial assets classified as 'held-for-trading' or designated upon initial recognition 'at fair value through profit or loss' at fair value. Gains or losses on these assets are recognised in the net result for the year. Financial assets are classified as 'held-for-trading' if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives are also classified as held-for-trading unless they are designated as effective hedging instruments under AASB 139.

Loans and receivables

Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Changes are recognised in the net result for the year when impaired, derecognised or though the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amount unless the effect of discounting is material.

(ii)

Financial liabilities

Financial liabilities are classified as either 'at fair value through profit or loss' or 'at amortised cost'.

Financial liabilities at amortised cost (including borrowings and trade payables)

Financial liabilities at amortised cost are initially measured at fair value, net of transaction costs. These are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Payables represent liabilities for goods and services provided to the Infrastructure NSW Staff Agency and other amounts. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

Gains or losses are recognised in the net result for the year on de-recognition of financial liabilities.




(e) Financial Instruments (cont'd)

-8-

(iii) Derecognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assetsexpire; or if the entity transfers the financial asset:

where substantially all the risks and rewards have been transferred; or

where the Infrastructure NSW Staff Agency has not transferred substantially all the risks andrewards, if the Infrastructure NSW Staff Agency has not retained control.

Where the Infrastructure NSW Staff Agency has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset continues to be recognised to the extent of the Infrastructure NSW Staff Agency's continuing involvement in the asset. In that case, the Infrastructure NSW Staff Agency also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Infrastructure NSW Staff Agency has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the entity could be required to repay.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the net result.

(iv) Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet ifthere is a currently enforceable legal right to offset the recognised amounts and there is an intention tosettle on a net basis, or to realise the assets and settle the liabilities simultaneously.

(f) Employee benefits and other provisions

(a) Salaries and wages, annual leave and sick leave

Salaries and wages (including non-monetary benefits) and paid sick leave that are expected to be settledwholly within 12 months after the end of the period in which the employees render the service are recognisedand measured at the undiscounted amounts of the benefits.

Annual leave is not expected to be settled wholly before twelve months after the end of the annual reportingperiod in which the employees render the related service. As such, it is required to be measured at presentvalue in accordance with AASB 119 Employee Benefits (although short-cut methods are permitted). Actuarialadvice obtained by Treasury has confirmed that the use of a nominal approach plus the annual leaveentitlements accrued while taking annual leave (using 7.9% of the nominal value of annual leave) can beused to approximate the present value of the annual leave liability. The entity has assessed the actuarialadvice based on the entity’s circumstances and has determined that the effect of discounting is immaterial toannual leave.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leavetaken in the future will be greater than the benefits accrued in the future.




(f) Employee benefits and other provisions (cont'd)

-9-

(b)

Long service leave and superannuation

The Staff Agency's liabilities for long service leave and defined benefit superannuation are assumed by the Crown Entity. The entity accounts for the liability as having been extinguished, resulting in the amount assumed being shown as part of the non-monetary revenue item described as 'Acceptance by the Crown Entity of employee benefits and other liabilities'.

Long service leave is measured at the present value of expected future payments to be made in respect of services provided up to the reporting date. Consideration is given to certain factors based on actuarial review, including expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using commonwealth government bond rate at the reporting date.

The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer’s Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees’ salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees’ superannuation contributions.

(c)

Consequential on-costs

Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. This includes outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax.

(g) Comparative information

Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.




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(h) Changes in accounting policy, including new or revised Australian Accounting Standards

i) Effective for the first time in 2017-18

The accounting policies applied in 2017-18 are consistent with those of the previous financial year except for the following standards adopted for the first time in 2017-18. The impact of these Standards in the period of initial application is not material.

AASB 2016-1 Amendments to Australian Accounting Standards - Recognition of Deferred Tax Assets forUnrealised Losses

AASB 2016-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments toAASB-107

AASB 2016-4 Amendments to Australian Accounting Standards - Recoverable Amount of Non CashGenerating Specialised Assets of Not for Profit Entities

AASB 2017-2 Amendments to Australian Accounting Standards - Further Annual Improvements 2014-2016Cycle

ii) Issued but not yet effective

NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise. The following new Australian Accounting Standards have not been applied and are not yet effective (NSW TC 18-01).

AASB 9 Financial Instruments AASB 15, AASB 2014-5, AASB 2015-8 and 2016-3 regarding Revenue from Contracts with Customers AASB 16 Leases AASB 17 Insurance Contracts AASB 1058 Income of Not-for-profit Entities AASB 1059 Service Concession Arrangements: Grantors AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of

Share-based Payment Transactions AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 with AASB 4 Insurance

Contracts AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit

Entities AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for

Not-for-Profit Entities AASB 2017-1 Amendments to Australian Accounting Standards – Transfer of investment Property, Annual

Improvements 2014-2016 Cycle and Other Amendments AASB 2017-3 Amendments to Australian Accounting Standards – Clarifications to AASB 4 AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments AASB2017-5 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10

and AASB 128 and Editorial Corrections AASB2017-6 Amendments to Australian Accounting Standards – Prepayment Features with Negative

Compensation Interpretation 22 Foreign Currency Transactions and Advance Consideration Interpretation 23 Uncertainty over Income Tax Treatment

INSW have assessed the impact of these new standards and interpretations and determined they will not have a material impact on the Staff Agency’s financial statements.


Infrastructure NSW Staff AgencyNotes to the financial statements for the year ended 30 June 2018

-11-

2 Expenses Excluding Losses

2018 2017 $'000 $'000

Employee related expenses

Salaries and wages (including annual leave) 6,695 5,965 Superannuation - defined benefit plans - 29Superannuation - defined contribution plans 524 425 Long service leave 265 434 Workers compensation insurance 7 15 Payroll tax and fringe benefit tax 404 400Redundancy Payments 222 844On costs - annual leave and long service leave 56 66

8,172 8,178

3 Revenue

2018 2017$'000 $'000

(a) Personnel servicesPersonnel services 7,734 6,859

7,734 6,859

(b) GrantRedundancy 167 844

167 844

(c) Acceptance by the Crown Entity of employee benefitLong Service Leave 271 475

271 475

4 Current Assets – Receivables

2018 2017 $'000 $'000

Personnel services 1,350 1,1241,350 1,124

5 Current Liabilities – Payable

2018 2017 $'000 $'000

Accrued salaries, wages and on-costs 290 161Creditors 127 96

417 257



-12-

6 Current / Non-Current Liabilities – Provisions

2018 2017 $'000 $'000

Current Employee benefits and related on-costs Annual leave 666 647 Long service leave 138 107 Payroll tax 110 98 Total provisions 914 852

Non-current Employee benefits and related on-costs Long service leave 19 15 Total provisions 19 15

Aggregate employee benefits and related on-costs Provisions – current 914 852 Provisions - non-current 19 15 Accrued salaries, wages and on-costs (Note 5) 290 161

1,223 1,028

All the employee leave entitlements are expected to be paid within twelve months from the reporting period.

7 Contingent Liabilities and Contingent Assets

The Staff Agency is not aware of any contingent liabilities and/or contingent assets associated with its operations.

8 Reconciliation of Cash Flows from Operating Activities to Net Result

2018 2017 $'000 $'000

Net cash used on operating activities - - Decrease / (increase) in provisions (66) (158)Increase / (decrease) in receivables 226 (74)Decrease / (increase) in payables (160) 232Net result - -



-13-

9 Financial Instruments The Staff Agency's principal financial instruments are short term receivables and payables. These instruments expose the Staff Agency primarily to credit risk on short term receivables. The Staff Agency does not enter into or trade financial instruments for speculative purposes and does not use financial derivatives. The Chief Executive Officer has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing risk. Risk management policies are established to identify and analyse the risks faced by INSW, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Management on a periodic basis. (a) Financial instrument categories Financial Assets

Note

Category

Carrying Amount

Carrying Amount

Class: 2018 2017 $'000 $'000 Cash and cash equivalents N/A - - Receivables1 4 Loans and receivables (at

amortised cost) 1,350 1,124

Financial Liabilities

Note

Category

Carrying Amount

Carrying Amount

Class: 2018 2017 $'000 $'000 Payables2 5 Financial liabilities measured at

amortised cost 417 257

Notes: 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB7). 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB7). (b) Credit Risk Credit risk arises from the financial assets of the Staff Agency, which are receivables. No collateral is held by the Staff Agency. The Staff Agency has not granted any financial guarantees. Credit risk arises when there is the possibility of the Staff Agency's debtors defaulting on their contractual obligations, resulting in a financial loss to the Staff Agency. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Receivables - trade debtors All trade debtors are recognised as amounts receivable at balance date. The balance owing represents monies due from Infrastructure NSW. Sales are made to them on 14 day terms. No financial assets are past due or impaired. (c) Liquidity risk Liquidity risk is the risk that the Staff Agency will be unable to meet its payment obligations when they fall due. The Staff Agency continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets.




-14-

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSW TC 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers, where payment is not made within the specified time period, simple interest must be paid automatically unless an existing contract specifies otherwise. For payments to other suppliers, the Head of an authority (or a person appointed by the Head of an authority) may automatically pay the supplier simple interest. No Interest for the late payment was paid during the year (2017 nil).

The table below summarises the maturity profile of the Staff Agency's financial liabilities, together with the interest rate exposure.

Maturity Analysis and interest rate exposure of financial liabilities

$'000 Interest Rate




2018 Payables1: Accrued salaries, wages and on-costs

290 290 290 - -

Creditors 127 127 127 - - 417 417 417 - -

2017 Payables1: Accrued salaries, wages and on-costs

161 161 161 - -

Creditors 96 96 96 - - 257 257 257 - -

Notes:

1. The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on theearliest date on which the entity can be required to pay. The tables include both interest and principal cash flows andtherefore will not reconcile to the statement of financial position.

(d) Market risk

The Staff Agency has no exposure to foreign currency risk and does not enter into commodity contracts.

(e) Fair value measurement

(i) Fair value compared to carrying amount

Financial instruments are generally recognised at cost. The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value.

10 Events after the Reporting Period

There are no events subsequent to balance date which affect the financial statements.

End of audited financial statements.


INDEPENDENT AUDITOR’S REPORT

Infrastructure NSW Staff Agency

To Members of the New South Wales Parliament

Opinion

I have audited the accompanying financial statements of Infrastructure NSW Staff Agency (the Staff

Agency), which comprise the Statement of comprehensive income for the year ended 30 June 2018,

the Statement of financial position as at 30 June 2018, the Statement of changes in equity and the

Statement of cash flows for the year then ended, notes comprising a Statement of Significant

Accounting Policies and other explanatory information.

In my opinion, the financial statements:

• give a true and fair view of the financial position of the Staff Agency as at 30 June 2018, and of

its financial performance and its cash flows for the year then ended in accordance with

Australian Accounting Standards

• are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and

the Public Finance and Audit Regulation 2015

My opinion should be read in conjunction with the rest of this report.

Basis for Opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the

standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’

section of my report.

I am independent of the Staff Agency in accordance with the requirements of the:

• Australian Auditing Standards

• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for

Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of

New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an

Auditor-General

• mandating the Auditor-General as auditor of public sector agencies

• precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.


Other Information

Other information comprises the information included in the Staff Agency’s annual report for the year

ended 30 June 2018, other than the financial statements and my Independent Auditor’s Report

thereon. The Chief Executive Officer of the Staff Agency is responsible for the other information. At the

date of this Independent Auditor’s Report, the other information I have received comprise the

Statement by the Chief Executive Officer.

My opinion on the financial statements does not cover the other information. Accordingly, I do not

express any form of assurance conclusion on the other information.

In connection with my audit of the financial statements, my responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or my knowledge obtained in the audit, or otherwise appears to be materially

misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other

information, I must report that fact.

I have nothing to report in this regard.

The Chief Executive Officer’s Responsibilities for the Financial Statements

The Chief Executive Officer is responsible for the preparation and fair presentation of the financial

statements in accordance with Australian Accounting Standards and the PF&A Act, and for such

internal control as the Chief Executive Officer determines is necessary to enable the preparation and

fair presentation of the financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the financial statements, the Chief Executive Officer is responsible for assessing the Staff

Agency’s ability to continue as a going concern, disclosing as applicable, matters related to going

concern and using the going concern basis of accounting except where the Staff Agency will be

dissolved by an Act of Parliament or otherwise cease operations.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objectives are to:

• obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error

• issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in

accordance with Australian Auditing Standards will always detect material misstatements.

Misstatements can arise from fraud or error. Misstatements are considered material if, individually or

in aggregate, they could reasonably be expected to influence the economic decisions users take

based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing

and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The

description forms part of my auditor’s report.


http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

My opinion does not provide assurance:

• that the Staff Agency carried out its activities effectively, efficiently and economically

• about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented

• about any other information which may have been hyperlinked to/from the financial statements.

Caroline Karakatsanis

Director, Financial Audit Services

25 September 2018

SYDNEY


Human resources

Infrastructure NSW has a compact, specialised team that brings together the best of the

public and private sectors.

Infrastructure NSW has grown in this reporting period due to an increase in the number of

projects under the Restart NSW Fund, an increase in the number of projects being referred

to Projects NSW and the inherent need to provide central shared services to support this

increase in business activity.

Infrastructure NSW head count at 30 June 2018 was 45 including part time, casual and

fixed term employees, seconded full-time employees and excluding full time seconded out

employees.

Executive positions and remuneration

As at the 30 June 2018 the total number of executive positions at SES Level 1 or higher is

24.

The CEO expressed satisfaction with the performance of his executive team throughout

2017-18. Infrastructure NSW does not make performance payments.

Senior Executive Staff Number / gender Average remuneration

Band 3* 2 male / 3 female $459,133*

Band 2 6 male / 4 female $309,005

Band 1 2 male / 6 female $207,357

*Includes two positions determined by SOORT

Personnel policies and practices

Infrastructure NSW has adopted and continues to develop the best policies and practices

of both public and private sectors in employee management. Senior Executive Service

employees of Infrastructure NSW are employed under an employment agreement which

determines the significant conditions of employment in concert with the Government

Sector Employment Act NSW 2013.

Each Senior Executive role is assessed in accordance with the GSE Act and Public

Service Commission guidelines to establish suitable remuneration.

Diversity

Below is snap shot of the organisation based on the June 2018 Workforce Profile Diversity

Report (rounded to nearest 0.5% (n= 45))

Item Response Response

Gender Female 64.5% Male 35.5%

ATSI identified 0% 0%

Disability identified 0% 0%

Ethnicity identified

(racial, ethnic minority)

8% 11.7%


Language diversity

(ESL identified)

11% 8%

Industrial relations

There were no industrial disputes lodged and no working time was lost due to industrial

disputes during the year.

Annual report production

The production and printing cost for the 2017–18 Annual Report was nil. A PDF version

of the report can be downloaded at infrastructure.nsw.gov.au.

Promotion

Date Officer Destination Purpose

26 - 28 September 2017

Graham Bradley

London Attend the Australian British Chamber of Commerce Infrastructure Catalyst Conference.

7 - 10 October 2017 Anissa Levy USA Accompanied the business delegation to the US being undertaken by NSW Treasury.

29 - 30 October 2017 Jim Betts New Zealand Attend the Australia - New Zealand Infrastructure Sector Group Conference.

2 - 11 November 2017 Anissa Levy USA Accompanied the Business delegation to the US being undertaken by the Hon Andrew Constance MP, Minister for Transport & Infrastructure.

3 - 7 December 2017 Jim Betts China Accompanied the Premier of NSW as a delegation member to the Trade & Investment Mission to Guangzhou, China.

3 - 7 December 2017 Simon Hunter China Accompanied the Premier of NSW as a delegation member to the Trade & Investment Mission to Guangzhou, China.

12 - 13 March 2018 Kirstie Allen New Zealand Attend New Zealand Treasury briefings to explore State Infrastructure Strategy investment and asset management initiatives.

21 - 27 May 2018 Brendan Bruce New Zealand As above.

Responding to consumers

Infrastructure NSW provided independent advice to Government and does not deliver direct services to the public.


http://www.insw.com/

Payment of accounts

The tables below summarise the account payment performance during 2017-18. During the

year, there were no instances where penalty interest was paid and there were no significant

events that affected payment performance.

Aged Analysis at the end of each quarter – All suppliers

Quarter Current (within

due date) < 30 days overdue

30 - 60 days overdue

61 - 90 days overdue

90 + days overdue

September $583,595 0 0 $87,117 0

December $723,196 $59,354 0 0 0

March $1,469,707 $7,470 $27,390 0 0

June $1,010,973 0 0 0 0

Accounts due or paid within each quarter

Measure September December March June

All suppliers

Number of accounts due for payment

658 611 548 730

Number of accounts paid on time

546 530 474 691

Actual percentage of accounts paid on time (based on number of accounts) 83% 87% 86% 95%

Dollar amount of accounts due for payment ($) 41,225,665 52,039,371 59,362,308 58,999,054

Dollar amount of accounts paid on time 36,659,577 50,550,133 58,084,211 58,156,360

Actual percentage of accounts paid on time (based on $) 93% 95% 94% 81%

Small business suppliers

Number of accounts due for payment 0 0 0 0

Number of accounts paid on time 0 0 0 0

Actual percentage of accounts paid on time (based on number of accounts) Dollar amount of accounts due for payment - - - -

Dollar amount of accounts paid on time - - - -

Actual percentage of accounts paid on time (based on $)

Number of payments for interest on overdue accounts Interest paid on overdue accounts


Consultants

Infrastructure NSW was created as a specialist small agency drawing on the best of public and private sector expertise to provide independent advice to Government, as outlined in the Infrastructure NSW Act. As such, Infrastructure NSW engages external support during peaks in workloads as necessary.

This enables specialist subject matter experts to be used economically and efficiently as required.

In 2017–18, a number of consultants were engaged to assist on key work streams valued at more than $50,000, and these are presented in the table below.

Strategy, Planning and Assurance

Infrastructure NSW Operations (Including Investor Assurance)

Name Amount ($)

Description

KPMG Australia Pty Ltd 139,723 NSW Development and Growth Demand Projections for the State Infrastructure Strategy (SIS)

GREX 158,775 Gap analysis and needs identification for digital connectivity services

Manidis Roberts Pty Ltd 87,960 Consultation Reporting to support the SIS

Deloitte Financial Advisory P/L 161,955 Transport strategy, planning, research and analysis services for the SIS

Centre for International Economics 397,945 Economic modelling & consultancy services to support the SIS

Everything Infrastructure Services 114,998 Infrastructure policy cost estimates to support the SIS

Astrolabe Group Pty Limited 56,400 Policy and technical advisory services to support development of a Smart Cities Strategy and Program

Turner & Townsend Pty Ltd 102,488 Development of updated Gateway Review Guidance Workbooks

HKA Global Pty Ltd 85,870 Assist with the IIAF trends and analysis reporting

The Trustee for Thinkplace Unit Trust 198,381 Solution advisory services for the Investor Assurance Portal

TOTAL 1,504,495

Hawkesbury Nepean Valley Flood Risk Management Strategy

Name Amount ($)

Description

E3 Bates 295,249 Emergency Evacuation Specialist Services

Water NSW 7,076,775 Detailed concept design for Warragamba Dam raising, environmental assessments (and approvals), and preparing the financial business case to Cabinet

Fairway Boulevard Pty Ltd 114,750 Strategic Advisory

SR Flood Solutions Pty Ltd 224,914 Flood Specialist Technical Management services

Bureau of Meteorology 1,028,000 Development and operation of a pilot forecast service for extended lead time flood forecasts for the Hawkesbury Nepean Valley

Newgate Australia 136,295 Social Research Services

Roads and Maritime Services 1,995,967 Traffic Management and Road Evacuation


Improvement Works

TOTAL 10,871,950

South Creek Sector Review

Name Amount ($)

Description

Stephen Clary 146,750 Expert Advisory for the South Creek Sector review

Frontier Economics Pty Ltd 186,664 Advisory services to support the review of regulatory barriers to cost effective water recycling

Frontier Economics Pty Ltd 268,935 Preparation of a Strategic Options Business case for the South Creek Corridor review

Alluvium Consulting Australia Pty Ltd 114,047 Advisory services on water sensitive urban design and flood plain management

Elton Consulting Group Pty Ltd 127,011 Advisory services on social infrastructure and public open spaces

Cox Architecture Pty Ltd 135,770 Advisory services on urban design and landscape services

Aecom Australia Pty Ltd 108,546 Advisory services on water cycle management and water sensitive urban design options and cost estimates

TOTAL 1,087,723

Projects NSW

New Grafton Correctional Centre

Name Amount ($)

Description

Minter Ellision 647,450 Legal advisory services

KPMG Australia Pty Ltd 67,629 Financial and commercial advisory services

Jacobs Group (Australia) Pty Ltd 50,028 Environmental assessment advisory services

NBRS & Partners Pty Ltd 835,830 Design advisory services for the precinct

NBRS & Partners Pty Ltd 106,990 Design advisory services for enabling works

Transgrid 54,171 Feasibility studies to provide power to the site

Transgrid 1,481,000 Design services for the connection of power to the site

TOTAL 3,243,098

Anzac Memorial Centenary Project

Name Amount ($)

Description

Johnson Pilton Walker Pty Ltd 357,839 Design advisory services

Arup 67,193 Advisory for building services design

TOTAL 425,032

Walsh Bay Arts Precinct Project

Name Amount ($)

Description

Tonkin Zulaikha Greer Pty Ltd 294,818 Design advisory services

Arup 97,880 Engineering services advisory

Arup 192,788 Acoustic design services

Taylor Thomson Whitting (NSW) Pty Ltd

93,400 Structural engineering services

MG Planning Pty Ltd 68,000 Urban planning services


Tonkin Zulaikha Greer Pty Ltd 97,110 Architectural services

TOTAL 843,996

Stadium Australia Refurbishment

Name Amount ($)

Description

Cox Architecture Pty Ltd 238,935 Architectural services

TOTAL 238,935

Martin Place Siege Memorial

Name Amount ($)

Description

Johnson Pilton Walker Pty Ltd 390,917 Architectural services

TOTAL 390,917

Sydney Football Stadium Redevelopment

Name Amount ($)

Description

Aurecon Australia Pty Ltd 230,000 Engineering services delivery

Arup 125,408 Acoustic design services

Douglas Partners Pty Ltd 154,315 Geotechnical and contamination assessment

Ethos Urban Pty Ltd 120,105 Planning advisory services

Arup 92,475 Traffic and transport assessment

PWC 426,310 Development advisor services

The SJB Architecture NSW Unit 194,050 Urban design advisory services

Arup 202,092 Advice on storm water and flood assessment and design

Aspect Studios Pty Ltd 158,770 Landscape design services

Aver Pty Ltd 52,600 Advice on a construction management plan

Ethos Urban Pty Ltd 55,000 Advisory on visual impact assessment

Arup 71,989 Structural engineering services

Ethos Urban Pty Ltd 120,000 Assist with the Social and economic impact assessment

King & Wood Mallesons 100,597 Legal advisory services

Cox Architecture Pty Ltd 995,000 Architectural services

TOTAL 3,098,711

Public interest disclosures

During the year, Infrastructure NSW received no public interest disclosures.

Government Information (Public Access) Act 2009

The intention of the Government Information (Public Access) Act 2009 is to make government information more open and readily available to members of the public. Infrastructure NSW complies with this Act.

In 2017-18, Infrastructure NSW received one GIPA Act access application from Members from Parliament, one from a private sector business and one from a member


of the public.

Infrastructure NSW provides the following statistical information about the access applications received which is required by Schedule 2 of the Government Information (Public Access) Regulation 2009: Number of applications by type of applicant and outcome

A

ccess g

ran

ted in f

ull

Access g

ran

ted in p

art

Access r

efu

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d in f

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Info

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n n

ot

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Info

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n a

lre

ad

y

availa

ble

Refu

se

to d

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ith

applic

atio

n

Refu

se

to c

on

firm

/de

ny

whe

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form

ation is h

eld

App

lica

tio

n w

ithdra

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Me

mbers

of

the p

ub

lic

(oth

er)

Media 0 1 0 1 0 0 0 0 0

Members of Parliament

0 2 2 1 0 0 0 0 0

Private sector business

0 0 0 0 0 0 0 1 0

Not for profit organisations or community groups

0 0 0 0 0 0 0 0 0

Members of the public (application by legal representative)

0 0 0 0 0 0 0 0 0

Members of the public (other)

0 0 0 0 0 0 0 0 0

Personal information applications

0 0 0 0 0 0 0 0 0

Access applications (other than personal information applications)

0 1 0 0 0 0 0 0 0

Access applications that are partly personal information applications and

partly other

0 0 0 0 0 0 0 0 0


Contact us

For more information or to comment on the

Infrastructure NSW Annual Report 2017- 18,

please contact:

Infrastructure NSW Telephone: + 61 2 8016 0100 Email: [email protected] www.insw.com

Business hours: 8.30am – 5.30pm

Macquarie House, Level 15, 167 Macquarie Street, Sydney PO Box R220, Royal Exchange, NSW 1225

ABN 85 031 302 516


mailto:[email protected]

http://www.insw.com/

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